If a state has implemented its own homesteading exemption, you will probably be required to follow the state’s law, and you may not be eligible to claim the federal homesteading exemption. [6] X Research source In other states, you may choose between claiming the state or federal exemption. As of the most recent adjustment in 2013, the federal homestead exemption is $22,975. [7] X Research source

In certain states, such as California, homestead exemptions apply only to “real property. " This means you won’t be able to declare your houseboat or motor-home a homestead under these states’ homesteading laws, even if it is your principal residence. However, some states, such as Wyoming, do allow the exemption to be applied to trailers. [9] X Research source

Providing support for a close family relative, such as a disabled sibling or an aging parent, may allow you to declare a homestead exemption for that relative’s home instead of your own. However, you can only declare one property as a homestead; you cannot have two homesteads at once.

Montana does not offer a standard declaration form, but it does provide sample documents. [11] X Research source Nevada requires a homestead declaration form to be filed, but provides a generous exemption of $550,000 (relative to other states). [12] X Research source In Texas, you only need to file a homestead declaration to protect a property larger than a certain size, which varies based on location and family status. [13] X Research source In Vermont, resident homeowners are required to refile a homestead declaration each year. [14] X Research source Virginia is one of the most restrictive states when it comes to homestead exemptions. You must file a declaration, and the exemption is limited to a maximum of $10,000. [15] X Research source

The APN is the number that county assessors use to identify and catalog your property. You should be able to find the APN on the deed of your home. You can also get it from the local office that records deeds or the tax assessor’s office. You can find the full legal description of your property on your deed. This includes the street address as well as the dimensions and exact boundaries of the property. [17] X Research source Have the form notarized. Your county may or may not require this step. A notary will substantiate your declaration by confirming that you are who you say you are.

You should receive a stamped copy of the document indicating that it has been recorded.

Homesteading may also not protect you from paying for legal judgments concerning child or spousal support. In Oregon, for example, a court may choose to decline a homestead exemption in order to fulfill child support payments. [20] X Research source A legal homestead will only protect the amount of equity that you own. For example, if you purchased a house for $90,000 and you owe $40,000, the homestead claim will only cover the $50,000 equity. This is the amount that you have paid on your mortgage. The exemption limit varies widely from state to state. In California, for instance, a single person who is not disabled qualifies for an exemption of up to $75,000; if the person is 65 or older, or physically or mentally disabled, the limit is increased to $175,000. [21] X Research source

An encumbrance is a monetary claim that someone else has filed against your property: it keeps you from transferring property, and it may restrict your use of the space. In real estate, you might encounter encumbrances like an outstanding mortgage or unpaid property taxes. [22] X Research source A judgment lien on real property is created when someone sues you and wins a money settlement against you. The lien is recorded with the county recorder’s office nearest your home. A judgment lien helps the judgment creditor–the person who won the suit–collect his money from you. [23] X Research source If you sell your house, that lien will get paid from any available equity. Home equity is the actual value of your house after you account for all liens and encumbrances. To calculate it, subtract the total of liens and encumbrances from the market value of the house. For example, if your home has a market value of $400,000, but you owe $300,000 on the house, the home equity equals $100,000. The equity in a house can change. As home values increase, equity increases. As home values decrease, equity decreases. If home values stay constant, equity still increases if you are paying down the mortgage.

Renting your home to someone else can also destroy your property’s homestead status. For example, in Florida, renting a home for more than 30 days in 2 consecutive years constitutes “abandonment” of the homestead. [24] X Research source