'It's all gone': Melbourne family's house 'unlivable' after car smashes through

A young family with a newborn are devastated they have to look for a new place to live after an allegedly drunk driver smashed a car through their Melbourne home.

Keylie Groen was asleep with her partner and eight-month-old baby when the hatchback tore through their Seville house last night, destroying multiple rooms before landing in their backyard.

"(If the car landed) a metre over that would have taken out our wall and three months ago, our son slept there," Groen told 9News.

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"We are just grateful to be alive."

The Melbourne mother said the house is now unlivable and they have no option but to search for somewhere else to stay.

"We have worked really hard for this," she said.

"We have lived here for the last two years. I had my son here and we now can't live here.

"It is all gone."

Their next-door neighbour said she heard "a terrible, terrible bang".

"It actually sounded like a bomb had gone off. It was so loud," Trish told 9News.

"It was very scary. I was actually shaking from the noise because I thought it was my house that had gone. It was terrible, just terrible."

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The house is seriously damaged.

The driver, a 45-year-old woman from Clayton, allegedly returned a positive breath test of 0.154, more than three times the legal limit.

Her licence was immediately suspended, and charges are expected to be laid.