Residential Loan Types in Panama

Residential loans in Panama are classified into 4 types:

Residential: is one that will be used as main dwelling. This would be considered your primary residence. In general terms for residential loans vary between 20 to 30 years and can get financing from 50 to 90% of the total value of the purchase.

Summer House: generally is one purchase that its purpose is of partial use, theoretically they are located outside of the city of Panama in the beach or mountain  area. The financing terms usually range from 50 to 80% of total purchase, with repayment terms between 10 and 25 years.

Investment Loan: is used to acquire a property for the purpose of resale or rental. The financing terms usually range from 50 to 70% of total purchase, with terms between 10 and 20 years of repayment.

Construction Interim Loan: a short-term loan for the construction of a home that usually lasts between 12 and 24 months. At the end of the construction this becomes a long-term loan that can be used for any of the three previously mentioned purposes.

Improvements: is the construction of a house that is already built. Banks offer financing from 50 to 90% of an recent appraisal. The term of repayment is linked to the classification of the property: primary residence, vacation or investment.

Land: financing for the purchase of land for any use. Between 40 and 60% financing with a repayment period of 10 to 15 years.

For more information on residential loans in Panama please see our article: 

”Panama Mortgage Loans”

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