You can buy a home as long as the judgment has been paid, settled or ordered removed by a judge. The lender,closing attorney and the title company will need a copy of the "satisfaction of judgment/lien" page as the original will have to be filed at the county court house.
If it has not been paid earlier then it will have to be paid at closing. The attorney will make sure thatthe "Satisfaction" will be filed at the court house after closing and the Title company will be able to issue a clean title & insurance.
To explain why--a judgment can become a lien on the house which if placed at the right time could take the mortgage company's place as 1st -- the same as if the mortgage company lets that judgment slide--and you buythe house, that judgment slides...right into 1st place as the mortgage paperwork is filed. This will notmake the mortgage company happy.