A WOMAN has been charged with lighting a fire that destroyed a house at Nana Glen overnight. 

The 43-year-old, an occupant of the property, appeared in Coffs Harbour Local Court this afternoon charged with cause malicious damage by fire.  

Fire crews were called to the Morrows Rd property at 10.46pm.

Neighbouring property owners said flames rose 20 metres above the double storey home.

Local residents captured video footage at the height of the fire. 

Firefighters said the other occupants of the home evacuated in time and were uninjured.  

The woman accused of arson was arrested at the Coffs Harbour Hospital at 2.30am.  

Police will allege in court she deliberately lit the fire, which is understood to have started in a bedroom.  

Rural Fire Service Operations Manager Inspector Michael Brougham said investigations were ongoing.

"We had six tankers on scene and 23 personnel on the ground," Inspt. Brougham said.

"The fire flared up again around 4am as police were still on scene investigating the cause.

"Fire crews returned and extinguished the burning embers.  

The 43-year-old woman was bail refused this afternoon.

She will reappear in court on Tuesday.