UPDATE (5:02 p.m.) - CAL FIRE says everyone made it out of the home and no injuries were reported.
The home is considered a total loss and the Red Cross is being called out to assist the seven people displaced.
CAL FIRE expects to remain on scene for a few hours for mop up.
ORIGINAL STORY: Firefighters were called to reports of a large structure fire in Arroyo Grande Thursday afternoon.
The fire was reported at about 4:15 p.m. on the 500 block of Mirabella Lane and appeared to be fully involved.
CAL FIRE, the San Luis Obispo County Sheriff's Office and PG&E were among agencies on scene.
This is a developing story and will be updated as information becomes available.