USDA-Approved Areas Near Memphis, TN: Where You Can Buy with Zero Down

dchapman70
Jul 10
3 min read

There are several USDA-eligible areas located right outside of Memphis City Limits!

Looking to buy a home just outside Memphis, TN and want to avoid a down payment? A USDA loan might be the perfect solution. Backed by the U.S. Department of Agriculture, USDA loans are designed to promote homeownership in rural and suburban communities—and the good news is, you don’t have to move far from the city to qualify.

At Local Mortgage in Memphis, we help buyers find USDA-approved areas where you can take advantage of zero-down financing and competitive mortgage terms. Let’s take a look at what USDA eligibility means and where you can buy a home in 2025.

What Is a USDA-Approved Area?

A USDA-approved area is a geographic zone designated as eligible for the USDA Rural Development loan program. These areas are typically outside major metro centers and must meet certain population density and economic guidelines.

You don’t need to live on a farm or in a remote location. Many suburban and exurban communities near Memphis fall within USDA-eligible zones.

USDA Eligibility Map: Memphis, TN Area

While the core of Memphis (inside the I-240 loop) is not USDA-eligible, several growing communities within 20–30 minutes of the city are.

Here are some top USDA-approved areas near Memphis:

✅ Arlington, TN

A fast-growing suburb with new homes, top-rated schools, and a small-town feel—only about 30 minutes from downtown Memphis.

✅ Lakeland, TN (Fringe Areas)

Some outer parts of Lakeland are still USDA-eligible, especially near the Shelby/Fayette County line.

✅ Millington, TN

Located just north of Memphis, Millington offers affordable homes, access to NSA Mid-South, and qualifies for USDA financing in most areas.

✅ Oakland, TN

In Fayette County, Oakland is one of the most popular USDA-approved areas due to its new developments and affordable home prices.

✅ Piperton, TN

A quiet community near Collierville, offering spacious lots and newer homes. Many properties qualify for USDA financing.

✅ Atoka & Munford, TN

Located in Tipton County, both towns offer a strong sense of community, newer subdivisions, and USDA loan eligibility.

How to Check if a Property Is USDA-Eligible

The USDA provides an interactive eligibility map where you can search by exact address. But you don’t have to do it alone—at Local Mortgage, we’ll verify the eligibility of any property you’re interested in and guide you to homes that meet all USDA guidelines.

We also work closely with local real estate agents who specialize in USDA-eligible homes.

Why Buy in a USDA-Approved Area?

Here’s what makes USDA loans so attractive—especially in Memphis suburbs:

$0 down payment required
Low fixed interest rates
Reduced monthly mortgage insurance
Flexible credit and income requirements

If you’re looking to stretch your budget and avoid hefty upfront costs, USDA loans can be a game-changer—especially in growing, family-friendly areas around Memphis.

Who Qualifies for a USDA Loan?

To qualify for a USDA mortgage, you must:

Purchase a home in a USDA-approved area
Meet household income limits (for Shelby and surrounding counties, usually around $123,500 for 1–4 people)
Use the home as your primary residence
Have a stable income and fair credit history

Final Thoughts

If you’re dreaming of homeownership but want to avoid a down payment, USDA loans offer a powerful path forward—especially in USDA-approved communities just outside Memphis.

At Local Mortgage, we specialize in helping first-time buyers, military families, and rural homeowners find zero-down financing options that fit their lifestyle and budget. We’ll help you identify eligible areas, calculate your income, and get pre-approved fast.

How I Can Help You

When it comes time to purchase a home or refinance an existing loan, I want to help you! Hopefully articles like this give you good information and a better understanding of the mortgage world but let me use my experience and expertise to help you with your particular situation.

I tell my clients and referral partners that a mortgage transaction starts with a simple conversation. Let’s talk about your financial situation, budget, and goals so that I can help you determine the best solution for you. During a 10-minute informal conversation, we can get you on the right path as it relates to a home purchase or mortgage refinance.