Fire crews went to the single-family home at 1370 Mocho Court shortly before 5:30 p.m. on reports of the fire, San Jose fire Capt. Barry Stallard said.
"The fire was reported after some sort of explosion in the garage," he said. The blaze then spread from the garage to the attic.
Fire crews had the flames contained shortly after 7:30 p.m., Stallard said.
He said the home's garage is a total loss and that the blaze caused serious damage to the attic and second story of the home. There was also smoke damage throughout the house and two cars in the driveway caught fire, Stallard said.
He estimated damage to the property and contents at $400,000.
The fire displaced the home's seven residents, who will be staying with family, Stallard said.
There was no report of injuries and the cause of the fire is under investigation.