Hi, if you take money out of your 401(K) you will pay a high penality and taxes.
You need that 401(K) for your retirement....very much so. That money should be un-touchable! Just forget it is there.
Some people below have said that you don't have enough money to buy in NYC, I'm actually suggesting that you are better off not buying.
Because remember, with a house you have maintenance, property taxes, and utilities that are currently covered in your rent. You need a savings or income cushion to afford all that stuff.
A better plan, I think, is for you to find a better rental situation--and stay a renter.
Licensed Real Estate Salesperson
New York, NY