200k Minimum For Financing?

[Patrick Rabalais]

Per the advise of some smart people here on BP, I started looking in to financing for my first rental investment. Thanks to their low barrier to entry, I started with Rocket Mortgage.

The feed back I got was to expect a 25% down payment (okay), 13-14k in additional closing costs (woah!), a mid to high 3’s interest rate (solid) and a required appraised value of 200k or greater (huh?). All properties I am looking at are in the Dallas area.

That uh, seems prohibitive. Is the 7% closing costs and a 200k required minimum value of the property common? I plan to talk to some other lenders but wanted to make sure I had my bearing straight.