Thank you for the replies.
@401king -- my roof was damaged during a storm last year. Received insurance money for the roof but I have interior damage due to water. (electrical, drywall, ceiling etc..)
@sCuseFan -- how do I know if my 401(K) offers the safe harbor option? Because what you described is EXACTLY what I'm facing.
@ESOP Guy -- yeah, I'm not to keen on possibly commiting a crime. It's my hard earning money though.
@kcbrim -- my plan allows for hardship withdraws.