My debt to income ratio is on the high side and the purchase price is less than 40000. We want to buy this starter home. Also does not qualify for FHA bc no central heat/air. What can I qualify for?

Ask about a 203k loan. This loan will give you room in the loan to install updates in the home.Jesse Stroupwww.idahofhaloans.com

You may want to try the USDA Direct Loan. Contact the local USDA Rural Housing office located near you. Good luck!