401K withdrawal while leaving the country

I see this question has been asked before but it seems not from this angle.
I’m leaving the country soon and I will not be able to continue contributing to 401K here.

While some may argue that it is always beneficial to leave the money in the account until retirement I have a scenario that might disagree. In my home country the interest rate is very high, so if I take a home loan I will pay a lot more money in interest than 401K could possibly grow here, guaranteed. Additionally by having my house paid for I can save a lot more money for retirement in my home country.

That said I’m looking for the best strategy to move the money out.
If I simply withdraw from 401K I pay 10% penalty + 20% fixed withholding tax – which I can claim in refund next year as my real tax should be 12% based on income + 401K this year.

Instead, I have two questions/ideas that I think might be better option.

1. We can take money penalty free to buy a residence, does that apply if I can prove I’m buying a home in my home country?

2. Alternatively, I could roll it over to IRA and then close the account, pay 10% penalty but not 20% withholding tax, yes next year I will file my TAX and I’m pretty sure I will fall on 12% tax at the time. Considering my paychecks have been taxed in a high bracket for the first two months I believe I will have to pay a small amount of tax at the time.

The question is: Can I open an IRA and close it 2 days after receiving the funds? or will the bank create impediments or am I required by Law to keep the money at least X months/years in IRA?

Many thanks for any help.

Lucas