The blaze started around 3:30 a.m. on the 17000 block of Virginia Avenue. It took firefighters over 45 minutes to put the fire out.
According to fire officials, the fire started in the basement, seeped through the walls and completely gutted the second floor of the home.
The Maryland State Fire Marshal's office has ruled the fire as accidental and says it started because of a power strip malfunction.
Everyone made it out of the house safely. The American Red Cross has stepped in to assist both families.
The Maryland State Fire Marshal is now investigating the cause of the blaze.
A portion of Virginia Avenue was closed for over three hours Monday morning while crews were on scene.