Can our bdrm be in the basement? And children on 2nd Fl?

My husband and I own a two bedroom house, its small and cozy, but our basement is a finished basement and can become a bedroom. We wish to adopt at minimum, 2 children, or a max of 3. We have no plans of selling and buying a bigger house due to our finances. The basement is accessible within the house, and is modeled to be a bedroom with an accessible pantry room and laundry room, we will also be installing a new window soon. The plan is to adopt between 5yrs-12yrs old. So its just an honest question, since I don't know what to expect with a home study over such a concern. So can we be on different floors, bedroom wise? Especially when adopting older children?