Is using money from my 401k for a downpayment of a home a "permissible section 414 withdrawal"?

[MonikaK1]

If you are looking for an exception to the 10% "penalty" on early withdrawals - you can avoid the 10% early withdrawal penalty if the funds come from an IRA, but not from a 401K. 

See this IRS link: Exception to 10% Additional Tax   

You will see a YES in the IRA column for ''qualified first-time homebuyers, up to $10,000'' 

See this TurboTax tips article for more information on this topic.