can you get a fha rehab loan if you currently are upside down on a cionvention 30 yr

I am trying to avoid pissing away money for rentevery month and spoke to my in laws about possibly putting an addition on thier home by applying for a fha rehab loan. I am aaware that they are upside down but based on what I have been reading, if the loan amount is to be base on the projected value after the addition, there would be plenty of room to build the addition. Tht is if we can still borrow up to 105% of the pprojected appraised value. Can anyone give me some feedback on this. The property is in NY by dmc0657 from Nanuet, New York. Jun 6th 2011 Reply