You misunderstand. The first time home buyer exemptions is only for the 10% early distribution penalty, not the normal tax. The penalty only applies if you are under age 59 1/2 so at 61 there is no penalty reguardless of what you do with the money.
The first 10,000 is only for a penalty if you were under 59 1/2 and have a 10% Early Withdrawal Penalty. You are older so no penalty. Either way the whole distribution is taxable (over any basis you might have) and may push you into a higher tax bracket. So be careful.