Fire crews raced to the scene on Settlers Drive at the Ploughmans Arms Estate about 2.45pm.

No one was injured.

Smoke damage could be seen from the front of the home, while at the rear, a burnt-out dryer was spotted.

Firefighters from the Sebastopol Fire Brigade and Fire Rescue Victoria quickly got the blaze under control - one witness said flames were at least 10 feet high at one stage, while passers-by shared videos of thick grey smoke pouring from the rear of the building.

Sebastopol brigade Second Lieutanant Allan Jubber said the rear was partially collapsed.

"We're not exactly sure what the cause is, we don't think it's suspicious but we're getting that investigated," he said.

"We're getting the occupants organised with relief accommodation in the meantime.

"Both CFA and FRV, we're working really closely together, and it's really good we're able to do it."

He urged people to check smoke alarms, keep an eye on heaters, and not to charge devices on beds.

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