You can buy a house in Texas with bad credit by cleaning up your credit report and improving your credit score as much as possible. Plenty of free help is available in Texas to help you get ready for home ownership.
Make an appointment with a nonprofit credit counseling agency in Texas, such as the Consumer Credit Counseling Service of South Texas. Authorize the credit counselor to pull your credit report and review it with you. Follow the counselor's advice for addressing all delinquent items on your report such as charge-offs, judgments and liens. Also make payments to bring all existing accounts current and maintain an on-time payment history for 12 to 24 months.
Call the U.S. Department of Housing and Urban Development (HUD) to find a HUD-approved counselor in Texas near you. Ask the counselor about mortgage loans insured by the Federal Housing Administration (FHA). In August 2010, FHA loans were available with credit scores as low as 500---far below the 620 score generally recognized as the cutoff for "good" credit.
Real Estate Agents
Hire a real estate agent knowledgeable about the FHA home-buying process. Find a home in Texas and apply for a mortgage through an FHA lender or another lender comfortable with people who have had credit problems.