Generally yes, as long as you genuinely reestablish the home as your primary residence before financing it as one. Underwriters look for evidence that the home is actually where you live: whether it was reported as a rental on your prior year's tax return, where your utility bills and tax documents are addressed, and other markers of occupancy. Your intent has to match the paper trail. How believable the move is matters too. Moving back into a comparable home is straightforward to justify. Moving from a $2 million beachfront house into a $300,000 inland condo and calling the condo your primary residence is a much harder sell, because the facts don't line up with how people usually behave. We have had clients downsize from a large acreage estate into a smaller house and get approved without trouble, because there was a reasonable explanation an underwriter could accept, like caring for a family member or simply wanting less maintenance. So the mechanism works. Plan on documenting the move the way you would any primary residence, and expect more scrutiny the more unusual the swap looks. If you want to map out how a specific pair of properties would be treated, that's the kind of thing we walk through on the free Roadmap conversation.