A 48-year-old man has been arrested on the charge of attempted murder after allegedly trying to bulldoze a family sleeping in their NSW home.

Police were called to Weir Road in Teralba on the NSW Central Coast early on Monday after reports a man had driven over three parked cars with a bulldozer.

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He was driving the bulldozer towards a detached garage on the property where a 29-year-old man was sleeping.

He then steered the machine towards the home and drove into and over it until it was demolished, police said.

A 56-year-old woman and her two daughters, aged 15 and 20, were forced to flee the home to escape injury.

Police arrested the man at the property and have taken him into custody for questioning.

He was reportedly known to the family and the bulldozer was allegedly stolen from a plant in Teralba.

No one was injured.