How to Withdraw from SEP IRA for First Time Purchase?

[Rich Petrucci]

I have a self directed SEP IRA, with about $25k in it. I'd like to borrow from the account for a downpayment on my first property. I would owner occupy a multi family. I've read you can take up to $10,000 out of your IRA without penalties for a first time homebuyer.

How do I actually withdraw these funds and where do they go? And how do I pay taxes on them? I'm in NY state.