Thanks for the reply to my message. One last issue I want to clarify. My former employer already kept 20% for taxes since I didn't indicate that I was going to rollover. If I rollover into a IRA say in April and pull the money out in May to buy a house, will I get taxes withheld again?

Thanks!
Jay

You replied to my original message...
You would first have to move your 401k funds to an IRA rollover account. Then, assuming that you qualify, you could take a $10k withdrawal (without penalty...but subject to taxes) for qualified first time homeowner expenses.

[[ Are there any restrictions on the amount of money that can be pulled out to buy a home, or any
restrictions on fund transferred from a 401K or any time restrictions like the Roth IRA?]]

No restrictions from a transfer from your old 401k to an IRA rollover. A brief summary of the first time home buyer penalty exception follows...