You have a few issues to look at on an individual basis. Laws on mortgages in Texas are some of the toughest in the nation but similar to those in my state, Georgia, and were established to protect you, the consumer. The credit score used for evaluation will be the middle of the three, 695. This can achieve a 100% loan if all the other indicators allow and I will briefly explain.
Using a Debt Management company is not good from the sense of applying for a mortgage. Why? Lenders look at this as you not being able to management your debt(s). You are "paying" someone to "pay" your bills, therefore, you will be looked at as someone not responsible enough to do same and you are a "high risk" loan. In Georgia, this type of procedure "hits" your credit with more points than does filing "bankruptcy" for most people.
Other indicators for a mortgage include your debt-to-income ratio. You establish this by looking at all debt on the credit reports and adding the "minimum" required payments. Now, we need to do this with your projected housing payment also. Simply add what this maybe to the above and divide by your monthly income. Ideally, this should not exceed 45% of your income. Now, do same with just the projected housing payment, this should not exceeed 36%. There are many loans that allow these ratios to exceed and is considered a higher risk, therefore, your rate of interest goes up.
Also, when planning for a mortgage, at the "closing" where you actually take possession you will be required to pay "closing" costs. You may also be eligible for a "no closing cost" loan, therefore, the rate of interest significantly increases for much higher monthly payments.
ALWAYS consult a local mortgage broker, not these internet "crooks". Why? A majority, not all, will charge you a "brokers commission" not required by most states to be included in the GFE, Good Faith Estimate and could be a minimum of $1,200. Banks, typically, are not competitive with mortgage brokers on 1st mortgages. Why? Mortgage brokers have the convenience of many lenders to shop your loan, therefore, better rates, payments, etc.
Don't forget documents required and typically they include last two years of Federal Income taxes, last three months (2 maybe) banking statements, latest payroll stubs for two months, a "good pay" letter or log sheet from current landlord (cannot be relative), you maybe required to show proof of rent with cancelled checks. Of course, other items will be required and whoever does your loan will know more about you than anyone else in the world.
Don't be discouraged from meeting with someone to discuss. If you cannot get a loan now a "good" broker can put you on the right path of home ownership.
Mortgage Broker, Georgia