My sister expects to buy a home for herself and her partner on my moms’ death (money from estate.) The trust will not be more than $350,000. Can my sister buy a home in Northern California for half of the trust? Or is she being totally unrealistic?

Well, $350,000 can buy a house here even in the East Bay, provided you aren’t easily intimidated by cosmetics or sweat equity (meaning fixing it up yourself.) I found something in Antioch, Bay Point (the three-bed, two-bath one to the left has an asking price of $340,000,) Brentwood, Concord, Martinez and Pittsburg (lots in Antioch and Pittsburg.)

But if you’re asking can she afford something in San Francisco, probably not. A smaller house in the East Bay is much more possible now than it was even two years ago, and with the rising foreclosures seems destined to continue. Even with $175,000, it’s a sizable down payment. Even if the house is $500,000, with the down she’s only going to be making payments on $325,000 — which according to my calculator (and using 6.5 percent interest) that would be roughly a $2,112.50 monthly payment on a 30-year, fixed-rate mortgage.

So, although $175,000 doesn’t sound like a lot, it’s enough to make a good dent in even a Bay Area home.

(All you mortgage brokers out there, am I leaving anything out? Any good loans that I’m missing?)