The closing costs are 3.5% of the loan?  If so that's certainly in line and you aren't getting worked over there.  To get a better expanation post the GFE numbers and we can tell you if anything jumps out as really high but overall the cost is about right.  The rate does seem high but I'm not up to date on whether 203k has a higher rate than regular FHA but it's close to a full point higher than the plain jane FHA.