I am trying to refinance my "underwater" home mortgage. I owe $467K. I have been conditionally pre-approved for an FHA loan for $425K, with an additional upfront cash payment of $42K. The condition upon which the loan approval is riding is on the FHA appraisal of my home. According to the loan paperwork, my home needs to appraise at $435K for this deal to go through. This is an older home, and the appraiser may say that repairs are necessary in order for the loan to go through. If these repairs are eligible for the 203(k) Renovation Loan program (let's say I need the maximum $35,000 in repairs), how much must my home appraise for in order for me to not have to put any more cash down into the deal? And, what if I am not eligible for the 203(k) program? Any light shined on these questions would be greatly appreciated.