Appraisal question and confusion

[Daniel Porter]

I'll try to keep this straight to the point, so I apologize if I get off course.

I found a property in NM that had just fallen through last minute (buyer ruined their credit score and lost financing).
I was able to get an offer in before it hit the MLS again.

I offered $90,500. My real estate agent (plus my due diligence) showed the comps on this house to be approx $105-108K.
Additionally, the house was previously under contract (prior to losing funding) and due to be sold for $95K. Since that timeframe the whole house had new floors installed due to the previous home inspection and contract.

Well today my appraisal came in. They have it at $94,500.

My agent says that the number isn't correct and that my lender didn't express this was a "hardship sale". So the appraisal came in at a value that would satisfy the loan, but wasn't the proper amount.

Here is my question, confusion, concern....
Does this sound legit? From a noob perspective I don't understand why there would be different kind of appraisals. I would figure you just get the number and that's that. 

Based off the numbers my equity position, plus down payment wouldn't have required me to have PMI.
Now based off this appraisal I'll need PMI. 

Assuming this is legit I'm torn on what to do.
1) Request another appraisal so I get the legit numbers, not have to pay PMI (assuming it's actually a higher appraisal number), but have to pay another $650 fee.
2) Take it as is, know that it is likely worth more, and that the numbers still work (as fas as cashflow goes), pay PMI, then pay for another appraisal to drop PMI at some point.

3)......

Sorry this may be all over the place. I was just not expecting this today. I'm bothered that I paid the appraisal fee to have them give a number that worked for the lender only and could have potentially been higher due to this "hardship sale".

Thank you for any input you may have.

- DTP

[Caleb Heimsoth]

@Daniel Porter why are you paying for another appraisal? The value will still be the contract price for LTV purposes. It could appraise for 200k. Doesn't matter. You still need 20 percent down of the 90,500 to not pay PMI