bright-we started out the same way as you. i had to put a lot of my furnishings in storage it was so small. however, the rent was really cheap ($100!) and i saved every dime we could towards the down payment of a fixer-upper. it takes commitment- but my house has quadrupled in value since i bought it- we live in a very small community which has a college - so the values and rates in this area are somewhat unique to that setup- (very high rents) - affordable first home buying houses. keep looking and keep praying and save your money for that down payment!
ps. there are lots of ways to get in a house, but you need to be working at the same place for at least 6 months before you will even qualify for a loan. however, you could work out something with a house being sold by the owner. see, there are so many different ways to get into a house! Good Luck!