re: Would it ever be ok to tap into 401k for a first time home purchase?

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Would it ever be ok

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I hate phrases like this. There are no rigid, completely unbreakable rules when it comes to finance. Every situation is different.

A few years ago, I bet most of this board would have said absolutely do this, as houses were appreciating must faster than the market.

I don't think it's a good idea to tap a 401K for a first time home purchase - in most situations. There are a few situations where I think it can be an option:

1) It's a loan, which you can repay quickly (maybe a guaranteed bonus will be here in a few months) and you find a great bargain on a house that you really want

2) You are paying significantly more in rent than you would be paying in a monthly mortgage note, so you can easily afford the note, but the rent is so high you are slow in saving the last couple of thousand dollars needed for the house.