PMI Removal - FHA Loan

[Isaac S.]

Hi All, i have a SFR that i purchased about 5 years ago - and per the HUD it says for the PMI/MIP to be removed, i must pay premiums for 5 years and the LTV needs to be at 78%. Now i just hit 5 years, and the home has nearly doubled in value. I contacted the lender, and they said "Per Investor guidelines, we must use the appraised value or sales price of the home from closing (whichever is lower)" - so naturally the sales price of the home was much lower because it needed work and is at only 87% LTV based on that original number 5 years ago. Any thoughts on if this is true even, and what options i may have? Thanks.