The incident happened near the intersection of Richmond Place and Hillwood Drive in Huntington Station around 5:30 a.m.
The driver of a white Subaru Forester, identified as 22-year-old Diana Chirinos, somehow lost control and careened onto a lawn and through a fence before eventually crashing into the house, which then caught fire.
Firefighters responded and were able to put out the flames.
Neighbors said the Forester took down a shrub, a fence and a mailbox, before coming to a stop inside the home on Hillwood Drive. Police arrested 22-year-old Dinia Chirinos at the scene.
"I just tried to get away from the noise and ran out the back door," said neighbor Amy Worth.
Police said Chirinos was driving without a license and with faulty brakes. She was arraigned this afternoon at Central Islip. It's not clear where she was going this morning
The cause of the crash is under investigation, but Chirinos reportedly claims her brakes failed.
"I think she was in shock. She was sort of wandering around," said Worth.
There was one resident in the house, a 59-year-old woman who was not injured. The vehicle is being impounded for a safety check.