.), which satisfies the "just wanna flip the standard channels" crowd.

Website is standard...the thing is, if they get your info they will literally harass you with phone calls from some place in India.

Since Joe is not a registered lender, Joe is not held to the same standards as a lender and the sale could be a wreckless and poor activity by the bank putting Bob in that situation.

I used the standard Massachusetts Lease Rental application and it didn’t have any language regarding such. 

The way that things like this are typically handled is that if a lawsuit were to happen, since both people have been behaving under the assumption of a lease (the landlord renting their space and the tenant paying rent), they would probably treat it as if there was a standard month to month lease agreement.  

You haven't given many details so it's difficult to give you a quality answer for your situation.

But there are also some real challenges, like dealing with lower tenant quality on average, the extra red tape, annual inspections, and the longer time it takes to get tenants placed compared to the open market.

Other factors such as the quality of the tenant, and location will also determine the value you can get.

Lower your price, but don't lower your standards.

I am not making any conclusions just doubting, as previously mentioned, if a 30 year conventional mortgage (nonconforming, but standardized within the banks operations somewhat), necessarily excludes renting it out.