FHA upfront MI in the GFE.... (3%, mortgage, mortgages, fee)

[frois]

I buying a house on the Sacramento Ca, area with a FHA loan, my loan officer show me the GFE and I see a charge to paid upfront of 3,492.00. I putting down 3% on a $240k loan, so my loan amount should be $232,800.00, but all the papers show $236,292.00 so I ask my LO and he explain me about the upfront MI (1.5% of LA) that needs to be paid on FHA loans and that it could be roll over the Loan Amount ($232,800) so that's why $236,292.00, but Why on the GFE still shows on the section of Items Required by Lender to be pay Advance, on line 902, Mortgage Insurance Premium $3492.00 as charge.?????

Does it needs to be paid as well?, or It's only one charge because It's looks to me that I'm paying twice once financed and one upfront???

Could anyone explain me this? Am I getting rip off?

Thanks

[christeen]

The folks in the Mortgages forum will be able to help you. My understanding is FHA loans charge 1.5% funding fee up front, plus mortgage insurance each month. But again, the Mortgage folks will know definitively. Good luck.

[frois]

Thanks for your help