When withdrawing $$$ from 401K for 1st home purchase, is 10% penalty exemption capped at $10K?

I've got about $65K that I want to roll into an IRA and withdraw for a first time home purchase- unfortunately, it's the only way I can afford to buy in California. I want to avoid as much of the 10% pernalty for early withdrawl as I can. My plan administrator says the first-time home buyer exemption is... show more I've got about $65K that I want to roll into an IRA and withdraw for a first time home purchase- unfortunately, it's the only way I can afford to buy in California. I want to avoid as much of the 10% pernalty for early withdrawl as I can. My plan administrator says the first-time home buyer exemption is only good on the first $10K of my withdrawl? True? Any other way to avoid penalty?
Update: I don't need any information re: loans on the 401K. Fully versed there. Looking for info on avoiding 10% penalty- Thanks for trying.
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