Don't know what part of Texas. But as a resident of the Dallas/Ft.Worth area for 23 years I can tell you that spring rains can be torrential and if your house is at the bottom of this hill you are going to have a lot of mud in your house. You need to have this addressed immediately. I have several friends that have had this same scenario and 3 have ended up flooded.

Can you post pictures of the house in relationship to the house? Looks like there are great wooded areas on the hill. PA is Pennsylvania?

I live in Dallas...MAKE SURE YOU PLANT A GOOD GROUND COVER ON THIS HILL! I have a similar drop. We planted Asian Jasmine all over the area. It's a hardy ground cover that can take sun or shade, grows quickly & has a brilliant green glossy leaf. Just make sure to water it really well to get it started & then keep it moist until it quickly takes off! Once established, you can weed-eat it or just mow it if its getting unruly. Does outstanding in our crazy TX weather ! Stays green all winter.

I think an easy solution would be to get some backbone large shrubs onto the slope and create a winding stair pathway out of wood ties that you could later upgrade to stone. Also to work with the drainage I would create a meandering dry stream bed that starts at one side of the slope and traverses the slope ending in the drain with a bridge in the middle. See below pictures for ideas.