If you can qualify for the loan without your wife's credit or income, then no she does not need to be on the loan but can be with you on the deed. I can help you with a pre-approval and go through the steps of getting a new USDA loan. Contact me if you need information or see if you qualify for a USDA loan.
I read your responses.
If you wife's credit is bad, you can just put her on the deed but not the mortgage note.
As for collection accounts, many do not need to be paid off. In fact, often times if you do, your credit score will go down.
It is strongly suggested you have a lender pull your credit and run you through automated underwriting.
GSF is a licensed direct lender in Virginia.
Best of success. Keep asking questions. The only bad question remains the one you do not ask!