It wouldn't be to rent out. Not anytime in the near future anyways (by near future I mean 5 years or so). It would be an in-law suite. And the house is in East Point, according to the zoning regulations I read on their website a garage apartment is acceptable as long as it's within size and height requirements.
I read the information Kim posted off of the HUD site as well which is why I am asking the question - it's this part that is my sticking point:
"The maximum loan amount is $25,000 .....or for improving or building a nonresidential structure"
What defines non-residential structure?