The Midland Fire Department was called to 501 Canyon after receiving a call about a house fire around 9:49 p.m.
Firefighters said the cause of the fire is still unknown but began from the homeowner's vehicle which was parked next to his home. Officials said the vehicle had radiator problems.
Ten units were called on scene. Firefighters said the fire was put out in about 15 minutes.
The homeowner's home and vehicle is a total loss. The neighbor's home was also heavily exposed to the flame and suffered smoke damage.
The fire inspector said it is still under investigation.
There were no reports of injuries.