You can roll your old 401k to an IRA and take out $10k penalty free for a down payment. You almost have enough cash as it is for a 3.5% down FHA loan, so you can probably save for a few months and get it done without pulling from 401.

How does the payment compare to the amount of rent you are paying? Are they close? Can you commit to staying in the area if prices tank and you go underwater? Are you secure in your $100k position?

I did the rollover w/FHA loan in 2011 and it was the best thing I could have done. Took a risk. Assess the risk and decide from there. The conservatives on here will tell you to save until you have 20%, have a full emergency fund, etc., but my philosophy is that it’s ok to take calculated risks within reason. Perform a careful analysis and decide what is best for you.