There are many places to live that are not in the hood besides the heights/hillcrest, so you need to be open minded. There are homes in small pocket areas of west LR that have HUD foreclosures come up that you can pick up well below market value, but NEVER enter into any kind of a lease purchase arrangement unless you hire an attorney to look at the contract you're signing, because most sellers that will offer that are landlords looking to get extra money and don't act in good faith and you'll lose your cash equity. Start (1) go to a "local bank" and apply for a loan and see how much you qualify for now and what they say you need to do to get where you want. (2) follow that plan and be open to "starter homes" in good areas.

Your debt-to-income ration is quite out there, but neverthless, anything can be "feasible". It's all just a matter of finding a seller who's willing to provide that kind of offer. I would personally suggest taking a little time to knock down that debt and improve on you all's credit score. Those are definitely key factors to getting the ideal home you all are looking for...especially if you don't want to live in "the hood".