FHA loan for $149,575.00;there is a line PMI, MIP, Funding Fees financed @2617.00. What is this?

Check with your agent/lender, but PMI is Private Mortgage Insurance which you must have if you are financing more than 80% of the cost of the house. Funding fees tend to be fees charged by banks or mortgage brokers to actually process the loan and give it to you. MIP is Mortgage Insurance Premiums, which you pay to FHA so they can guarantee the loan (this is over and above the PMI). According to the FHA site, MIP has been suspended until later in 2010. You should ask your broker/agent for a better breakdown of what is contained in these charges and how much for each. My guess is 1.5 points (1.5%) for the funding fees (about $2,000) and $600 for PMI.