SORRY The house purchase exemptions is only from IRA accounts not 401K. So see answers below.
It's 10,000 per person and 401K. So you can exempt 10,000 from your 401K withdrawal.
And if you are married your spouse can exempt 10,000 from their early 401K withdrawal too. But that's all.
Only the amount over the $10,000 has the penalty. And you will still taxes on the full amount including the 10,000.
