The only exception would be if you give the bank another property as security or any other collateral in the bank's country, which would completely defeat the purpose.

Yes this would be specifically for the purpose of Owner occupied using an FHA loan.

You have seller finance for transaction purpose, but will have to pick up the income on the cash you have not received. 

So right now, while the property is owned by us as individuals, for tax purposes we would only be filling out schedule E form 1040 ?  

Never thought to look for potential partners (especially with all the promotion given to hard money lenders---even though hard money isn't the best for rental deals from what I've found).

After asking for these things 3 times now and still not receiving it, we are beginning to get the impression information is being withheld on purpose.

@Eric Lefebvre cities assess low on purpose because if they don't then everyone challenges the valuation, and they don't have the resources to deal with that, also it isn't worth it for them. 

Also it's a business expense for tax purposes.

They do not recognize a difference between a business purpose and consumer purpose loan. 

Make sure to disclose your purpose before booking with them to avoid conflicts.