@Matt Powers  Have you done any training, schooling in real estate investing? 

@Carl Rowles as a public school teacher you may have a 403b which also sometimes offers loans!

Conventional financing will also require that you qualify using employment history, income and DTI.

Without going into too much detail, my current situation stems from selling a previous company via partial owner financing, only for the new owner to default on the purchase, leaving me in this position.For traditional financing, I understand I’ll need at least one, if not two, years of solid credit history, tax filings, and other financial documentation.

However, prices on $1M homes haven't really appreciated all that much and we are looking to move to something much smaller near where our kids go to school. 

Also something to note, I live in the North Fort Worth area and be aware that there is some school district drama brewing in Keller ISD that covers much of 76244 and 76248.

What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.?

Verifying last 2 years of rental history very important!

My ADU is under 500 sq ft, so I didn't have to pay the extra sewer connection and school fees.

To do that, to completely re-zone and re-plat the entire area would require, if my history is correct, the largest exercise of eminent domain in US history.