Using text in Photoshop

I know, I should add text in Illustrator of Indesign because Photoshop rasterizes text as opposed to vectors. However, in this specific case (a record sleeve) I'm using blended images and want to use the same effect on all text. And yes, you can blend text in Illustrator, but after the blending I want to modify colours, and I just have to rasterise everything to get rid of the blending mode.

I'm using Downcome as a font, which is already quite 'messy' and the whole image will have a faded look. My question: if I will do everything in Photoshop, will it show- will I get a blurry look, trapping or other unwanted side-effects?

I added a sample from my design to clarify.

How does it look if you make outlines in AI then import into PS? Rastering won't matter if you've made outlines. And if you create it in 300DPI.