Why was the Homestead Act of 1862 important? The Homestead Act of 1862 guaranteed every new citizen a home in return for military service. As a result of World War I this act gave German citizens the right to come to the U.S. without a visa. This act allowed immigrants from any country to enter the U.S. with no questions asked for a period of 2 years. It promised free land to those who lived on the land for five years and made improvements.