This

make the letters, shrink selection, paste whatever you want in...simple, if you need more drawn out tell me...

 

Or a clipping mask. But with a CM you cant see the outline of the text, just the picture in words.

 

I said the same thing...just more drawn out.

 

Clipping mask and the what you do in GIMP is different.

Anyways, create text>make new layer>go to image/apply image>right click image layer>select create clipping mask> move layer to desired position. Finished. Enjoy.

 

Additionally, if you want the black border, you'll have to right click the layer and add a stroke.

 

:lock:'d at request.