Yes, you can, detached garages are perfectly okay with the 203k it is a common missunderstanding that you can't but the rule actually states that IF there is living area at the garage addition or if you are adding living area it MUST be attached to the main structure.
It was a common thing to add a second unit to an existing home when zoned for it and the lot was large enough by adding a garage or carport or two between the new unit and the existing unit all through the 1990's.
We had several in Rodeo where they had to replace the foundation and lifted the home high enough to add two units to the lower level and convert the original home to two units.
-Mike Young, 203k Team Leader
With offices coast to coast and HQ now at PMB 168, 5055 Business Center Drive, Suite 108 Fairfield, CA 94534 1.707.812.7668. We have fourteen offices in CA covering both CA states, NorCAL and SoCAL where we can cover the entire state.
To learn more about the FHA 203k loan program go to www.203kOnLine.com. To contact us for a consultation please go to www.my203kconsultant.com and "order a consultation".