Why aren't you asking this question of the people who are giving you the USDA loan?
The basement is not included in the squarefootage as it is not a "Living" area.
From what i read you should be happy that you are getting this at all.
Google it, just like i did.
Good luck and may God bless
Ask your lender if they permit it, they should be able to tell you right away or at least look into the guidelines and get back to you within an hour or two.
So what you're saying is that I should be able to ask for 8k (7% of the home value) to replace old appliances and put in a new and much needed flooring upgrade?
OR is this not full USDA based and more based on what the lender allows?
We are currently waiting back on our home offer and I would like to know what I can do as the home needs a few things here and there and the lender we are going with does not offer 203k loans...