All ears are on HUD lenders whose efforts reap rewards.

Nursing home owners and operators recognize that it's not always easy to qualify for a desirable FHA-insured HUD loan, but this isn't a compelling reason to take a pass on this potentially money-saving funding option.

"The borrower's chances of obtaining HUD financing greatly improve if they make an effort to understand the agency's expectations, choose to work with an experienced lender, and listen--almost blindly--to whatever the lender says as the loan moves through the application process," says Cambridge Realty Capital Companies Chairman Jeffrey A. Davis.

Cambridge is an FHA / MAP-approved HUD lender and closed more insured nursing home loans than any other HUD lender in the nation last year. Over the past 10 years, the company has closed more than 200 insured loans for properties in 26 states while obtaining loan commitments for more than 95 percent of its applicants.

"The part about listening blindly to what your HUD lender says may strike some borrowers as a bizarre idea. But under the fast-track MAP program, HUD-approved lenders have the responsibility for determining the applicant's credit-worthiness and are expected to make certain that borrowers are in compliance with various criteria and funding requirements established by the agency. It's important to believe in your lender's ability to get things done," Davis noted.

Cambridge has posted a qualification template on its corporate website that briefly describes who is eligible to apply for a HUD loan and identifies various requirements and / or restrictions related to loan size, occupancy / census, property size, ownership considerations, licensing and liability insurance.

Davis believes the advantages of HUD funding for senior housing / healthcare properties are well established. At this time, interest rates on HUD loans remain below six percent with HUD offering borrowers a 40-year fully amortized loan for new construction, major expansion or rehab, and a 35-year term amortization for refinancing.

The loan-to-value ratio for these loans is 90 percent for new construction and 85 percent for refinancing and acquisitions. However, when refinancing, HUD borrowers may qualify for up to 100 percent loan-to-cost funding, he noted.

"Nationally, HUD loans continue to be well received by borrowers. There's no reason for this to change," he said.