Every area has been affected with the recession and credit crisis, especially Fairfield. If your sister decides to stay there, she can buy a home for half of what they were in 2006.
Many investors are buying in places like Vallejo and Oakland and paying cash. That's another option. But I think the best advice would be for your sister to drive around and find out where she would like to live.
Your sister might consider buying a duplex or triplex and renting out the other unit and living in one. This would be a great move because she can get the same financing rates as buying a single family home. Live there until it appreciates, then pull some cash out and buy a single family home.
Dave "Tap" Tapper
Prudential California Realty
Rancho Cucamonga, CA 91701
Well, in a perfect world what I would suggest is buying a lower range home and financing it as much as possible (say 20% down). Given this scenario the rent should be able to cover the mortgage payments and other expenses depending on location. Then use the remaining cash to purchase their own mid range home.
However, most likely with 60k this option is unfeasible. So, I would suggest that they put the sum into a larger home. They might as well take advantage of the market and get as much home as possible. Plus they would be able to take advantage of the Federal and California first time home buyer tax credits.
Hope this helps.