My First Deal - am i doing this right

[Sipo Thao]

Hey guys,  So i got a home under contract for 55k.  I estimated 15k in repairs with a 110arv.  The place will rent at $1100/month.  And is rent ready with just a small facelift.

I am using 3rd party financing with a local bank. The appraisal came in at 70K in as-is. and 110k after repairs. the bank says they are able to loan me max $56k. 5.25% 7 ARM. 20 yr amort.

Do banks usually do this?  I called the banker and he said i will just need to cover the difference at closing.  Is it a good idea to borrow the full amount or put some money down in this situation.