Buying first home with student livng expenses loan.?

Hello all! My wife and I are both 22 and we have been married for 3 years with a baby boy about to turn 3 and a dog about to turn 1. I have a full time career making 3000/ mth. I have 2 $1000 dollar loans, a $7000 car loan, a $25000 car loan, and $300 credit card debt. We live with the in-laws currently and pay... show more Hello all! My wife and I are both 22 and we have been married for 3 years with a baby boy about to turn 3 and a dog about to turn 1. I have a full time career making 3000/ mth. I have 2 $1000 dollar loans, a $7000 car loan, a $25000 car loan, and $300 credit card debt. We live with the in-laws currently and pay $350/ mth for rent. My mother in law watches my son while I work and my wife goes to school for $0 dollars. My wife's financial obligations to school a year are $17000. She can get approved for an addition loan of $17000 a year for living expenses. This is where the housing question comes in. Should I shack up at the in-laws or move down the street to own a house? I have a credit score of 657 currently and I could potentially qualify for a VA loan. Would this be a good idea to buy our own place? It's not awful here at the in-laws but it def. isn't home. Thanks in advance!
Update: I am not a student. She has a loan/ grant for 17k currently. I agree with you guys I should probably wait. The main motivation for me was to get the 8000 tax credit. (10% of the total) We are not paying on the student loan. It will obviously start when she graduates from her specialized school May of 2011.
Update 2: Yes I was military. I am now a Reservist in the Navy.
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