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(on Archives.gov) Passed on May 20, 1862, the Homestead Act accelerated the settlement of the western territory by granting adult heads of families 160 acres of surveyed public land for a minimal filing fee and 5 years of continuous residence on that land.
Federal Homestead Exemption. The homestead exemption is designed to protect the equity in your principal place of residence. Keep in mind that you cannot use the homestead exemption on your investment or rental properties. You can currently protect $22,975 of equity in your home under the federal exemptions. (To learn how this important exemption plays a role in your Chapter 7 or Chapter 13 bankruptcy, see The Homestead Exemption in Bankruptcy .).