The Roth IRA allows for tax-free deductions if made after 59 1/2 and if the account has been active for a minimum of 5 years. What are the exceptions for first time home buyers? Is there a penalty if I make a withdrawl to buy my first home after 5 years before age 59 1/2??

Contributions can be withdrawn at any time without tax or penalty.
If the Roth has been open for 5 years AND you are withdrawing earnings there is NO tax and No penalty on the first $10,000 for a first time home buyer.