The fire was reported at a two-story, 1,500-square-foot home in the 500 block of Jacobs Place, off of Bayview Avenue, at 6:18 a.m., fire spokesman Thor Poulsen said.
Poulsen said a resident heard popping noises, walked outside and found the garage and a car parked outside the garage ablaze.
The resident then alerted four other people inside the home about the fire and made sure they got out, Poulsen said.
The fire caused a live electrical wire to fall across the walkway leading up to the home, which initially hampered firefighting efforts, Poulsen said.
The blaze spread to the second floor and sent smoke wafting over parts of the East Bay, including Hayward, San Leandro, San Lorenzo, Ashland and Cherryland, he said.
"It caused quite a stir," he said. "People wanted to know where the smoke was coming from. This is it."
Firefighters were eventually able to enter the home and pull out a small dog, Poulsen said. The blaze has since been extinguished.
None of the home's occupants suffered injuries, he said.
The cause of the fire remains under investigation.