You do not need credit to buy houses.

Contrary to what your dad told you, you may still be worthless, but at least you can own a home.

I won't argue that having good credit can help you buy a home.  It's not a must though.  It can make things easier, and certainly help you if you have to have lender financing, but having the lack of credit should not stop you from finding and getting deals.

Credit scores are evaluated the follow way:

30% - DEBT

10% - CREDIT PATERN

10% - CREDIT TYPE

35% - PAYMENT HISTORY

15% - HISTORY OF HAVING CREDIT

So, having this info helps, right?  Maybe, but take a hard look at it and determine whether any of these can really stop you from closing on a deal.  The answer is no, for the slow ones out there.

If you take the time to find a deal worth having, someone will be willing to take a chance on you.  You may not get the terms your hoping for, or may have to work harder on obtaining them, but you can get financed.

Hard money lenders, family, asset collateral - there are many ways to finance a deal.  Don't let the nay-sayers tell you different.  If you get really desperate, call your closest real estate investment club..  someone there will buy the home if it's truly a cash flow or equity asset.