There are quite a few properties in a few areas that you might fit your needs. The best thing is log onto my web site http://www.homesbyallyson.com and put in your own search. That way you can see for yourself , if you need help with the search just email me at email@example.com and I will put it in for you. I have worked with many clients relocating to Santa Clara County.
There is a variety of neighborhoods to check out. I would look at http://www.schoolperformancemaps.com to help narrow down the school you would like. (Just because a neighborhood has a good elementary does not necessarily mean it has the best high school. So it depends on the age of your children.)
I found about 70-100 listings for 2BR in decent school systems under $350K. I would also include Campbell, Cambrian Park, and Willow Glen in your search. I am happy to send listings via email. Just let me know.
I would look into the Evergreen area, there are some excellent schools and for 350K you can get a great condo or townhouse.
I would be glad to give you hand.
Have a great day!