Flip issue

[Chad Mellentine]

I bought a house on a private contract in March for $60k, we had very little rehab and placed the home back on the market 3 weeks later. We had 3 offers in 24 hours and accepted a $99,500 conventional buyer with 10% down. We were to close May 4th last Friday, but they are now concerned about value because the home was bought privately for $60k in March. They are telling me that the Private Mortgage Insurance (PMI) is concerned about the flip/profit of such a short sale. What are my options? We went with the conventional because FHA is so difficult to work with and now this has come up.

Thank you
Chad