Yes, under the Friendly Nations Visa program you may apply if you finance your property purchase with a local bank. However, most local banks will require proof of local income in order to provide financing.
What are some alternative payment options to obtain permanent residence in Panama?
I am from a country that qualifies for the Friendly Nations Visa. If I invest in property in Panama using a loan from my local bank, can I use that property to apply for permanent residence? Is there a mortgage system that works with the program?
As long as you can pay the property in full in Panama, you can apply for the FNV residency program. Mortgages are allowed as long as done with a local bank in Panama.