In Panama, one of the most retiree-friendly nations on the planet, it nearly defies logic that banks will only loan you money until your 75th birthday. And for every dollar you borrow, you must carry life insurance, PAYABLE TO THE BANK!

You may be surprised to learn that Panamanian banks don t offer fixed rates over one year, or that there are no caps in place to guarantee that after that one year, your rate does not skyrocket. Or that this subsequent rate is not even tied to a World Index!

You now have an option.

Your mortgage loan will be through an FDIC-insured lender with documentation requirements and procedures exactly like you would expect from any loan you may have had prior to this one in the United States.

This means you are no longer limited to the traditional getaway markets when thinking about that second home or investment property...

Just think....No Age Limits. No Life Insurance Requirements. Protection against Rate Increases. Fixed terms
for up to seven years. FDIC insured lender.

BASIC PROGRAM DESCRIPTION
The US Bank Residential loan program is currently only available to United States citizens and US Permanent Resident Aliens purchasing a primary residence, a second home or an investment property in Panama or Costa Rica.

WHO IS THE LENDER?
Our lender is FDIC-insured and headquartered in South Florida.

LOAN PRODUCTS & TERMS OFFERED
All our loans have a 30-year amortization. We offer fixed periods for one, three, five and seven years. See our initial rate sheet on page 9 of this package for our current rates. After the initial rate period, the index is based upon the One-Year LIBOR as published in the Wall Street Journal plus a margin of 3.5%.

QUALIFYING PROPERTIES
We provide loans for Primary Homes, Second Homes or Investments properties in either the Republic of Panama or Costa Rica. Eligible properties include Single Family Residences, Condominiums, 2-4 Family Properties, Townhouses, and Condo Hotels. All loans must be residential. High Rise condominiums of four floors or more in Panama City will be based on a pre-approved maximum price per square meter of $1,800.

ARE THERE ANY AGE LIMITS?
No. This is in direct contrast to Panamanian banks which have a 75-year age limit on their loans limiting the loan term available to the borrower. As an example, a 58-year old individual would only be eligible for a 17-year loan through a Panamanian bank. Through MIB, you can obtain a 30-year loan, no matter what your age.

DO YOU REQUIRE LIFE INSURANCE?
No. Also in direct contrast to Panamanian banks, which require life insurance obtained through a Panamanian insurance company on all loans, your loan through MIB does not require any such policy. This means that with MIB you will not be subjected to any medical examinations with a Panamanian doctor in order to obtain your loan. More importantly, you will not be subjected to monthly life insurance premiums in addition to your Principal, Interest, Taxes and Interest payments.

CAN I REFINANCE MY CURRENT PROPERTY?
Yes. You can convert your current Panamanian loan to a US-bank loan with all the benefits with minimum effort.

HOW MUCH CAN I BORROW?
We offer a Loan-To-Value (LTV) of up to 75% of the property purchase price or appraised value for loans up to $500,000. Over $500,000, LTV is reduced to 70%. See the attached matrix on page 10 for more detailed information.

ARE THERE ANY PRE-PAYMENT PENALTIES?
Yes. A 3/2/1 pre-payment penalty will apply during the first three years of the loan. 3% of the loan amount for the first year, 2% of the loan amount for the second year and 1% of the loan amount for the third year. No prepayment penalties apply after the 3rd year. A PRINCIPAL REDUCTION OF 20% PER ANNUM IS ALLOWABLE WITH NO PENALTY.

ARE THERE ANY CAPS ON THE RATES?
Yes. The interest rate may not increase or decrease by more than 2.5 percent above or below the previous rate during any adjustment period for all loans. In addition, the interest rate has a life of loan cap of 6 percent above the initial interest rate and a floor of the initial interest rate on the loan.

IS MY MORTGAGE INTEREST TAX DEDUCTIBLE?
Your mortgage interest may be tax deductible as it would be with any loan for property in the United States. Please consult with your CPA to determine if any tax deductions would apply to your particular tax situation.

CAN I PURCHASE PROPERTY IN THE NAME OF A CORPORATION?
Yes.

HOW FAST IS THE APPROVAL PROCESS?
We can get your loan approved and funded within 30 days from initial application.

WHAT ARE THE REQUIREMENTS TO OBTAIN A LOAN THROUGH MIB?
You must be a US citizen or Permanent Resident Alien. All our loans require full income documentation verification and require verification of liquid assets. Your middle credit score must not be less than 660. We require an appraisal through an approved Panamanian appraiser. For purchases, we require a complete sales contract with all required signatures and dates. We require title insurance on all our loans. All qualifying borrowers must be employed for a minimum of 2 years in the same line of business or profession, or must be able to demonstrate future sources of income (as in the case of retirees). For more complete documentation and program requirements, please see page 7, Program Requirements, and page 8, Documentation Requirements.

For the last several years, banks in the Republic of Panama have been offering residential mortgage loans to foreigners, including US citizens. There are several factors an individual should consider when they are deciding between a loan from a US bank and a loan through a Panamanian bank.

AGE LIMITS
The terms of mortgage loans through Panamanian banks are limited by a nationwide age limit of 75 years. This means that the term of your mortgage will be partially determined by how many years you have left before you reach the age of 75. As an example, a 56-year old person will only be eligible for a 19-year loan through a Panamanian lender. Through MIB, you will receive a 30-year loan, no matter what your age.

LIFE INSURANCE REQUIREMENTS
All Panamanian loans require life insurance from a Panamanian insurer on the loan with the bank acting as the beneficiary. In order to obtain said insurance, a person must first undergo a physical examination with a Panamanian doctor. If approved, the borrower will then find himself paying a life insurance premium monthly. These rates vary according to such criteria as age and whether or not you smoke, but tend to be higher than what is found in the US. As an example, rates can be as high as $100 monthly per $100,000 of the loan amount for a sixty-year old non-smoker.

FECI SURCHARGE
By law, a 1% surcharge applies to your mortgage rate with a Panamanian lender if either a) you are not a Panamanian resident, or b) if your mortgage is on a second home. If you receive a quote from a Panamanian lender, make sure to ask if the rate includes any applicable FECI surcharge. (FECI stands for Fondo Especial de Comisiones y Intereses.)

TERMS & FLOATING RATES  
Many Panamanian lenders do not offer loans for more than 20 to 25 years, regardless of age. Rates are usually fixed for only one year. Loans in Panama are not tied to any world index, but determined by each bank month in and month out thus the term floating rates .

CAPS
There are no protective caps on rate increases in place on Panamanian loans. Your loan could legally be at a 5% today and a 15% next year.

PRE-PAYMENT PENALTIES
It is important to check what your pre-payment penalties will be with Panamanian lenders. These vary from bank to bank; however, some loans do carry life-of-loan pre-payment penalties. MIB s US Bank Program carries a 3/2/1 pre-payment penalty which will apply only during the first three years of the loan. See page 3 for further details.

ADDITIONAL FEES
Many lenders in Panama have additional fees not usual to US loans. For example, several lenders require that mortgage payments be withdrawn through an account at the lenders institution. This requirement alone can require several wire transfer fees per year. Make sure you get a list of ALL fees from your lender.

US CUSTOMER SERVICE
Customer service has not reached the level of sophistication in Latin America that it has in the USA. Also, keep in mind English is often not the strongest language for the customer service center employees at the local banks and this may or may not influence your customer service experience with your loan. In addition, many lenders do not offer toll free numbers for customer service, which means you could incur long distance charges every time you have a question about your account. Check with the lender for any additional fees.

US BANK PROGRAM REQUIREMENTS

LEGAL STATUS
Must be a US citizen or Permanent Residential Alien.

CREDIT
All borrowers must have three credit scores and a minimum of three trade lines that have been open at least twenty-four months. Applicants are qualified using the middle of the three scores. No banrupcties or foreclosures are permitted within the last seven years. There can be
no mortgage payments over thirty days late within the last twelve months.

INCOME
All qualifying borrowers must be either employed for a minimum of two years in the same line of business or profession, or must be able to demonstrate futures sources of income, as in the case of retirees.

ASSETS
Liquid Assets must be equal to a minimum of 50% of the loan amount after closing. Acceptable sources of liquid assets are: Checking accounts, savings accounts, 401-K accounts, Vested Retirement Funds (IRA s, Roth-IRA s, etc.), Stocks (cannot include restricted or pledged shares), Bonds, and Cash Value of Life Insurance. As an example, if the loan is for $100,000, after closing, liquid funds must be equal to $50,000.

NUMBER OF LOANS
We will only make one loan to any individual or family of individuals if the income is from the same business source.

HOMEOWNER S INSURANCE
All loans require homeowner s/hazard insurance with replacement value.

TITLE INSURANCE
All loans require title insurance.

APPRAISAL
All loans require an appraisal.