Panama proposes rent-to-own for social housing access

Panama's Ministry of Housing and Territorial Planning (Miviot) is introducing a new rent-to-own program aimed at making social housing more accessible. The initiative, dubbed PASO, targets recent graduates and informal workers who often struggle to qualify for traditional mortgages due to limited work history or credit.

The program allows beneficiaries to rent a property for approximately three years, paying a monthly amount equivalent to a preferential interest rate payment. A portion of this payment will go towards rent, while the remainder will be saved. This structured saving and payment plan is designed to help individuals build a credit history, enabling them to secure a mortgage and purchase the home after the initial period.

"It will help not only the recent graduate but also the informal worker who, as the minister indicates, may have a good salary or economic profile but cannot access housing due to lack of experience or work history," explained Fernando Méndez, Vice Minister of Housing. He added that this mechanism would leverage the approximately seven-year subsidy period available under the preferential interest law, allowing aspirants to demonstrate their payment and saving capacity.

Meanwhile, the Miviot faces a significant budget challenge for 2027. The Ministry of Economy and Finance (MEF) recommended a budget of $66.8 million, a sharp decrease from the $463 million requested by the Miviot. This recommended amount is only about 14.4% of the requested funds and matches the 2026 budget. Minister of Housing Jaime Jované acknowledged that this allocation could impact program execution and lead to operational cuts, though $52.9 million of the recommended amount is earmarked for investment, projecting 2,700 families to benefit from housing improvements.

“

It will help not only the recent graduate but also the informal worker who, as the minister indicates, may have a good salary or economic profile but cannot access housing due to lack of experience or work history.