USDA Home Loan Co-Applicant Credit Impact?

This is pretty straight forward. As I stand now, my credit is in pretty good shape. My scores meet the guideline and my history also meets the guidelines. My wife who I am debating if she should be co-applicant or just used as secondary income on the application. Her credit file is what has me worried as of now.... show more This is pretty straight forward. As I stand now, my credit is in pretty good shape. My scores meet the guideline and my history also meets the guidelines. My wife who I am debating if she should be co-applicant or just used as secondary income on the application. Her credit file is what has me worried as of now. She has really high scores (higher than mine), but she has a bunch of bogus collections that were suppose to be removed. She had a 1100 dollar electric collection that was transferred out when they discovered she was under-aged when it started. That's a long story in its own. And then she has a few very minor collections that I plan to pay off for her.

Anyway, would it be a bad idea to have her be a co-applicant or just go it alone with her being put down as secondary income? Her scores are high, just with very minor collections such as medical. Also, she has not one single late payment on 5 years of installment loans.
Update: This is not true for the state I live in as I had a friend do the same thing in having the spouse put down as secondary income. It strictly means I am responsible for the mortgage. However, if we were to split then there are laws in place to insure she gets half of the money if I were to sell the house. Anyways, I... show more This is not true for the state I live in as I had a friend do the same thing in having the spouse put down as secondary income. It strictly means I am responsible for the mortgage. However, if we were to split then there are laws in place to insure she gets half of the money if I were to sell the house. Anyways, I appreciate your credit repair advice, but it is not needed as I have established my own more effective ways of repairing credit that ACTUALLY WORK. Disputing her items can do more harm than good. USDA will automatically deny you if you have any items in dispute that does not have a 0 balance. My question here was pretty simple. Do they look at her credit file the same as mine or just her score and credit payment history? Collections can sometimes be a different ball game.
Update 2: If all else fails I can use just my income. I will be accept in the loan range that I need. Just would like to make double sure that I will get accepted as my income is pushing close to the max range for what I need. Thanks for all advice and answers in advanced.
Update 3: I don't know why her scores are high. I don't know. Her Transunion score is 672. I don't understand it either. I haven't signed her up for Equifax yet. This stuff is enough to make a person sick and depressed. I finally get all my crap in order. Now I have to do it all over again with her credit files. This is... show more I don't know why her scores are high. I don't know. Her Transunion score is 672. I don't understand it either. I haven't signed her up for Equifax yet. This stuff is enough to make a person sick and depressed. I finally get all my crap in order. Now I have to do it all over again with her credit files. This is getting very stressful. A year ago her credit was perfect and I was the road block. Now she is the road block. I can't win!! Back to square one for me.
4 answers 4