Finally, a move by Fannie Mae that should help reduce the number of foreclosures on the market. For investors, this is a double-edged sword; financing is more accessible, but the result could be increased competition for the best deals, especially as spring draws near. For homeowners upside-down in their homes, rising prices would be a long-awaited boon.

Fannie Mae has increased the cap on the number of Fannie Mae-financed homes that an investor can own, from 4 to 10. In Fannie Mae's words:

Fannie Mae is committed to providing financing opportunities for high-credit quality, bona fide investors. Experienced investors play a key role in the housing recovery.

Fannie Mae wants to serve investors with a track record of owning and successfully managing rentals. Fannie Mae has no interest in providing financing for Johnny-Come-Lately investors who jump in and leverage OPM full tilt, later losing the homes back to the bank. But for investors with skin in the game and experience, credit is now more readily available.

Fannie Mae will now allow investors to finance up to 10, 1-unit homes when they meet the following guidelines:

          * 25% down payment

          * Minimum 720 credit score

          * No bankruptcies/foreclosures in last 7 years

          * No late mortgage payments in last 12 months

          * 6 months of PITI reserves for each financed property

          * 2 years of tax returns; must show rental income

Hindsight is always 20/20. Should you still think waiting on the sidelines is a good idea, you're very likely about to see the bottom from your always-accurate rearview mirror.

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