Thanks for your post.
Given the number of people in your family, current interest rates, the possibility of sufficiently high down payment to meet your goals, and the potential monthly income to cover the costs, I do not think there is anything here in the Bay Area proper (all the counties that touch the bay) that will meet your needs. There are homes in Tracy, Sacramento, Antelope, Stockton and south to Gilroy and Hollister that might have some older homes that could be purchased, but without a really large downpayment, it is not going to be easy or financially feasible to be $2000 a month or less including mortgage, mortgage insurance, utilities, insurance, property taxes and repairs.
As much as I would like to see everyone own a home, there are times, Jose, when such a goal is simply not appropriate for the time. This is not to say that you and the family won't eventually own a home again, but you should only do so when the home is affordable and can actually house and accommodate the number of family members that will live in it for the next 10 years. With two of you already heading out into the world as college graduates, it's very likely that any home large enough for all of the family members now may soon be too large for your family's needs, and too expensive for your parents to pay for by themselves and without your intervention.
Although you mention money from a pending lawsuit, it might be much better (considering the ages of the family members) to consider waiting until things settle down. The money from the lawsuit, if it arrives, can be invested and allowed to grow to ensure a suitable downpayment for the next home. This way, your parents are assured of a home in their retirement. The younger family members have plenty of "earning years" in front of them, so funds you earn should be used to cover your own expenses and should go into a savings account to cover your future home purchase too.
At this time, without knowing all of the circumstances surrounding your family and income, I would strongly suggest that you speak--not with a Realtor--but with a financial planner to determine how to invest now to purchase a home that your family can truly afford later.
Allison James Estates & Homes