Small loan = Higher closing costs?

[Michael Greer]

Hello,

I'm purchasing three 1b / 1b condos in a good area here in Ohio.

I'm financing through a bank and received my final closing disclosures on one of the units.

Purchase price is $40k. 

Loan is $32K.

Closing costs are $3600, not including the $700 appraisal and $450 homeowners insurance I had to pre pay.

$3600 closing costs on a $32k loan?

Is this reasonable?