Holding a license requires fees.  

HUD 4000.1 (I believe) is the latest HUD handbook and it goes over all requirements for originating the loan, including but not limited to occupancy requirements and exemptions.FHA occupancy : "At least one Borrower must occupy the Property within 60 Days of signing the security instrument and intend to continue occupancy for at least one year."

.: Quote from @Jay Hinrichs: Let me break your post into parts, as each concerns a different subject and as such requires a different response.1.

Piling on...all occupants who are 18 or older (or legal emancipated minor) should absolutely be required to make application. 

You are required to disclose knob and tube wiring to insurance companies. 

Being able to use real estate to offset taxable income requires some sort of participation on his end.If he wants you to be the boots on the ground, it will likely be hard for him to reduce his taxable income.

If you don't have a US-based bank account, I would get one as that's a requirement by most lenders.

What documents do they require, what credit scores do they allow, how do they verify previous rental history, etc.?

.✔️ Your house hack is more than a 2-unit property and requires more oversight.✔️ You’d rather pay for peace of mind and legal compliance.Final ThoughtsIf you’re house hacking a small multi-unit (like a 2- or 3-flat) and are comfortable being hands-on, self-managing can be a great way to save money and learn the business.

Private notes require more work than Stocks / Bonds, is the added return worth the extra work?