Also no one knows where the market is going to be in the next few years but if you plan to sell that house within than 5 years, and your neck of the woods is like most of the country, it may not be long enough time to make a return on your investment. Good luck.
With the amount of money you have saved, there is a chance you would be able to quailfy for a home loan. I would be happy to help you talk to a few lenders in the area to see if they can get you a great deal on a loan. Once you establish how much you qualify for we can start taking a look at some great homes in your price range!
With an income of $25,000 and mounting student loans it may be difficult to qualify for a mortgage. You've done a great job saving money and there may be some program for people in your situation I'm not aware of, so I can't say no, but it will be difficult.
Talk to a mortgage lender with your bank. If there is a way, they may have some guidance for you.