For foreign non-resident buyers, banks typically finance 50% to 70% of the purchase price or appraised value (whichever is lower). Therefore, buyers should plan on a down payment of 30% to 50% plus closing costs (roughly 2%-3% for notary and transfer expenses).

Requirements typically include: valid passport and second ID, last 2-3 years of tax returns (e.g. IRS 1040 for US citizens or T1 for Canadians), recent bank statements (last 6 months), credit bureau report from your home country, proof of income / employment or CPA audited statements for self-employed, bank reference letters, and completed application forms.

The mortgage process in Panama generally takes between 60 to 90 days from the time a complete document package is submitted to closing disbursement. We strongly advise obtaining prequalification before signing a purchase contract so contingency deadlines can be structured realistically.

Seller financing occurs when the property owner agrees to carry a loan for the buyer directly. While not all sellers offer this, some do—particularly for rural acreage, luxury homes, or development parcels. Terms typically range from 2 to 5 years with interest rates between 6% and 8% and a 30% to 50% down payment.

Yes, many buyers find it faster and more cost-effective to obtain a Home Equity Line of Credit (HELOC) or cash-out refinance on real estate in the US, Canada, or Europe, allowing them to purchase in Panama as a cash buyer and negotiate advantageous terms.