James Lane, 23, of Sebastopol, also ruptured a gas meter during the collision forcing the two adults and two children living in the Forrest St house to evacuate because of fears of an explosion.

The Ballarat Magistrates Court heard Lane had drunk about five bottles of beer and four to five cans of scotch and cola before getting behind the wheel of his girlfriend's car with two friends as passengers on the evening of October 5 last year.

Police Prosecutor Senior Constable Steven Kent said Lane failed to give way to traffic in Forrest St about 10.30pm causing another car to take evasive action before he crashed into the house.

Sen Const Kent said Lane caused $1268 worth of damage to the gas meter and $15,360 to the house.

The court heard Lane was not wearing a seatbelt and recorded a blood alcohol reading of .133.

Defence lawyer Brett Bryant said Lane, who was on unemployment benefits, was paying off the damage to the house in instalments.

Mr Bryant said Lane had not committed any further driving offences since the incident and had learned from the experience.

Magistrate Kay Robertson said the crash must have been "absolutely terrifying" for the home owner.

Lane pleaded guilty to charges including drink driving, driving in a manner dangerous, failing to have a qualified driver accompanying him and failing to wear a seat belt.

The matter was adjourned for sentencing on August 27.