Stef, I think you have a great chance of a better deal with 1/2 in cash. Why? Number one reason is that in this market of mortgage headaches, 50% down is a GUARANTEED mortgage. The listing agent should be made to understand this and get the seller on board.

The second great thing about it is your mortgage payments will be really smaller.

The third thing that is great about this is that when you are finished paying off your mortgage, you won't have paid 3 times the price of the house in interest. I say, go for it!

Stef,

Offering half as a down payment may make the offer more attractive if there are multiple offers and the other offers are putting less down but there is no direct correlation to purchase price. Make your offer based on recent comparable sales. Your agent will help you with this.

Good luck

The price will be the same to the seller whether you pay half or they get the other half from the bank in a mortgage. Money is still the same, so I doubt if they will give you any bonus of lowering the price. Money either coming from you or the bank is still green. You can try to offer less based on the fact that it will increase the chances on getting your mortgage, and maybe the seller will agree.