203k and the misconception of 3.5%

[John G.]

Hello to anyone who can chime and tell me this is normal.

Currently in the process of doing a 203k loan. I'm almost to closing, waiting on the consultant to submit work write up.

Apparently there is a misconception with the 3.5% down from fha (and i imagine this is global with any loan). 

Doing it with wellsfargo. Apparently, closing costs include the 3.5% down plus bank fees, which in realty ends up being double what i thought would be 3.5%, more like 7% with bank fees. Is this correct?

is the bank trying to bend me over backwards or is this common. Sorry, newb here trying my first investment.

bought a house at 148k, have 40k repair loan.

regards,

john