If every house has a back yard, and, as Statement 1 tells us, 40 houses have a back yard, there are 40 houses in total, so Statement 1 is sufficient.
From Statement 2, if a house has a front porch, it does not have a front yard. So if a house has a front yard, it cannot have a front porch. So we have 20 houses with only the porch, and 20 with only the yard, for a minimum of 40 houses in total. But some houses might have neither a porch nor a yard, so we don't know how many houses we have in total, and the answer is A.
For online GMAT math tutoring, or to buy my higher-level Quant books and problem sets, contact me at ianstewartgmat at gmail.com
ianstewartgmat.com