I'm not sure about the stencils but you could use a printer to print lettering you like and glue that to your wood and rout it by hand. There is another thread going about hand routing you might find helpful.
I think you'll find v-bits are the best choice for sign carving. You can do a lot with just a 90º and 60º v-bit. For finer detail you can also get what some call a profile bit. It's a bit with a small 45º tip below a 15º cutter. (see the photo). You don't need a lot of artistic skill. There are a ton of great images online, and you can easily layout text and images in a myriad of programs for your PC. [You could also check out my CNC Sign Making book. It has a lot of discussion about sign layout and design. :smile:]How difficult is this to do? I have no artistic skill. What bits would you use for it? I have a straight bit, but I would think that may be too large