A Michigan widow whose late husband served 21 years in the U.S. Army feared losing her lakeside home as rising expenses strained her fixed retirement income — until she uncovered financial benefits available to qualifying surviving military spouses.

Marlene Garvey told FOX Business that refinancing her mortgage through a VA-backed loan led her to discover a Michigan property tax exemption she had not known existed, allowing her to remain in the home she had dreamed of living in since childhood. Without the financial relief, she said, rising property taxes and other costs had become increasingly difficult to manage on her fixed income.

A Military Life and a Long-Awaited Home

Garvey's husband graduated from the U.S. Military Academy at West Point in 1962 and retired from the Army in 1983. He died in 1994, and Garvey attributed his death to Agent Orange exposure during his service in Vietnam.

After years of relocating with her husband to locations that included Leavenworth, Kansas, Garvey settled in Michigan in 2004, near the lake where the couple had honeymooned. "He knew when he passed where I was going to go, but I just always thought it would be the two of us," she said.

Retired and living on a fixed income, Garvey said she struggled to keep up with increasing housing expenses, including property taxes, while carrying a conventional mortgage. After seeing a television advertisement for VA mortgage refinancing, she contacted Rocket Mortgage, where representative Sean Park helped her refinance into a VA-backed loan. VA-backed mortgages are originated by private lenders and guaranteed by the Department of Veterans Affairs.

From Refinancing to Tax Exemption

During the process, Park identified a Michigan property tax exemption for which Garvey might qualify because of her husband's service-connected death. Garvey said she submitted documentation, worked with her local assessor and appeared before a three-member board before receiving approval.

According to the Michigan Department of Treasury, the state provides a property tax exemption for qualifying disabled veterans and certain unremarried surviving spouses who own and occupy their homes as their primary residences. The exemption under Michigan law is separate from the federal VA home loan program, which means homeowners pursuing VA financing do not automatically receive state property tax relief; the two benefits involve separate applications and approving authorities. Beginning in 2025, approved exemptions generally remain in effect without requiring annual reapplication, unless rescinded or revoked.

Garvey estimated that the refinancing and exemption process took roughly six months, although she could not recall the precise dates or financial figures. She credited the combined assistance with making it possible for her to afford the home.

"I wouldn't have been able to do it without Rocket Mortgage giving me a VA mortgage and refinancing and having that benefit in the state of Michigan," Garvey said.

VA Lending Activity Climbs

The Department of Veterans Affairs guaranteed 528,340 home loans totaling more than $206 billion in fiscal 2025, a nearly 27% increase in loan volume from the previous fiscal year, according to federal data. Refinancing accounted for 38.7% of VA-backed loans guaranteed during the year — the same type of transaction that first connected Garvey to the benefits she ultimately received.

The program allows eligible borrowers to refinance existing mortgages, although loan terms and borrowing costs vary. According to the U.S. Department of Veterans Affairs, certain surviving spouses — including those whose spouses died from service-connected disabilities — may qualify for VA-backed home loans. Eligible applicants generally must obtain a certificate of eligibility and satisfy lender requirements. VA-backed loans may offer competitive interest rates and do not require private mortgage insurance, although borrowing costs and eligibility vary.

Garvey said she was initially uncertain whether she qualified, given how many years had passed since her husband's death. "Look how long my husband had been gone, and before I realized that I could even get a VA loan, I wasn't even sure I could," she said.

Her experience highlights housing-related benefits that eligible veterans and surviving spouses may be unaware of, particularly as property taxes and other homeownership expenses place pressure on household budgets. Garvey encouraged other qualifying military families to explore the assistance available to them. For families in comparable situations, that exploration spans two distinct tracks: VA-backed lending through a lender, and state property tax relief through a local assessor's office.

"I would not hesitate anyone that qualifies for a VA mortgage to pursue it," she said.

This article is based on reporting by FOX Business.