The blazing creature ran back into the man's house, setting it on fire.
Luciano Mares, 81, of Fort Sumner said he caught the mouse inside his house and wanted to get rid of it.
"I had some leaves burning outside, so I threw it in the fire, and the mouse was on fire and ran back at the house," Mr Mares said.
Firefighters said that the burning mouse ran just beneath a window of the house, the flames spreading up the window and throughout the house.
The house was totally destroyed.
"I've seen numerous house fires," village Fire Department
Captain Jim Lyssy said, "but nothing as unique as this one."