Debris could be seen scattered across Rahway Road after the Wednesday morning crash.
Ring camera video shows the bus crashing through a fence and striking the corner of the house, taking out a portion of the garage area.
The driver told police she attempted to stop the bus at a stop sign but its brakes failed. After the crash, she managed to get the bus to come to a rest on the lawn.
Two of the three children on board suffered minor injuries. All three attend John Adams Middle School.
Three people hired for cleaning were working on the other side of the house during the crash and were not injured.
The house is condemned, and the owners will be displaced.
The bus will be inspected by the New Jersey Motor Vehicle Commission. An investigation is ongoing.