Please learn some basics.
Then learn something about challenge types.
If you read all of these things, then you will see: With your informations it's impossible to answer your question.
If the client of that hoster is limited, that's bad. But that's legitim, because it's their client. If the client supports dns validation, the local domain hosting may be required.
And what means "hosting"? If your website doesn't run there, it's impossible to use http validation.
If you are unhappy with that hoster. Use another.
PS: Conclusion: Your exact setup with your domain name, your dns provider and your hoster is required.