CHICO, Calif. - Firefighters contained an early Monday morning fire that destroyed a home in south Chico.

The fire broke out just before 3 a.m. on 2296 Mulberry street near East 23rd Street, according to the Chico Fire Department.

When firefighters arrived they saw flames coming from the house and smoke.

The Chico Fire department says powerlines were down in the area. CAL FIRE Butte County also came to the scene to assist.

Action News Now reporter spoke to a neighbor, he said two people lived inside that home with two dogs.

The neighbor, Thomas Rainboldt, who lives in an RV in front of the home, said he will help his neighbors while they’re displaced by letting them stay with him.

"At first I heard people yelling and screaming outside and I thought there was somebody being assualted," said Rainboldt. "I actually came out with a big old machete in my hand, then I saw that the homeowner was standing in between the house and the street. Then I saw glowing ember."

There have been no reports of injuries. The cause is still being investigated.