Early TSP Withdrawal After Separation

Context: I just finished my 6 year obligation in the reserves and have dropped to the IRR. My TSP has just shy of 12K in it as of today and after what TSP withholds for taxes I’d be able to withdraw a little under 11K (I’d pay the 10% penalty and state taxes on my filing for 2027). My current career offers a differed comp plan on top of the normal retirement with a 100% match that I contribute to every check. I can also pull from my primary retirement at 49 years old vs. 59.5 with TSP.

Question: I’m currently building a home on a plot of land I inherited. The extra 10K or so from an early withdrawal not on a loan with interest would be a major benefit for me at this time. I have absolutely 0 plans to go back into federal employment so the TSP will no longer be contributed to. I know I can roll it into an IRA but this isn’t as appealing to me since I have a very solid retirement through my employer. I have to wait 7 days for TSP to verify my account for direct deposit so I wanted some options before I pull the trigger. In this case could it be a good idea to do the withdrawal to save myself on the loan and dodge interest??