By late afternoon FHP confirmed three fatalities in the crash, but said they searched other victims. The Flagler County Sheriff's Office initially reported five people were on the plane.

The plane (pictured below) was registered in the British Virgin Islands and owned since 2008 by Anders -- a Spanish teacher at Clinton County High School.

Beechcraft Bonanza reported that Anders was returning from spending the Christmas holidays in the Virgin Islands with his friend, Shaw -- also from Albany, Kentucky -- and Shaw's girlfriend, Peoples, who was from Indianapolis.

The National Transportation Safety Board arrived Friday night to take over the investigation.  While it could takes months to determine what caused the plane to crash, the NTSB scheduled a 3 p.m. Saturday news conference to provide an preliminary update.

Family and neighbors speak about plane crash

Jessica Crockett said it's nothing short of a miracle that her 50-year-old mother, Susan, survived the crash. Her mother was the only one home at the time, and Crockett said she was in her bedroom when the plane carrying three crashed into her home.

"It's nothing but God," said Crockett. "The fact that my mom survived, the fact that she was able to get out."

Crockett said her mother immediately climbed out of her bedroom window and ran across the street to safety.

Paramedics took her to the hospital, but only as a precaution. Crockett said her mother is going to be just fine.Palm Coast plane crash - house burning

While Susan did survive the crash, investigators said all three people on board had died.

"My heart just goes out to their families," said Crockett. "I can only imagine what it will be like to lose a loved one. I will be praying for their families."

Neighbor Robert Ferrigno said he heard a loud sputtering noise from the engine and then a boom.

"I looked out the front window, up the street, and there's flames coming out the house," said Ferrigno.

Ferrigno said the flames were as high as the surrounding trees, which are about 40 feet tall.

Ferrigno said house insulation was coming down from the sky like snow. He said the homeowner was already in a neighbor's garage across the street.

"Unfortunately things like that happen. Accidents do happen, but never this close to home," Ferrigno said.

Tim Hornsby lives next door to the Crockett's with his wife and 7-week-old baby.

"There's insulation and pieces of it all over my yard," said Hornsby. "I'll be cleaning up tomorrow."

Hornsby said he wasn't home when the plane crashed, but the rest of his family had to be evacuated.

"My wife was pretty upset, yes," said Hornsby. "She was upset after seeing the explosion. I didn't see the accident, but heard the explosion."