Emergency services were called to the junction of Greenside Way and West Bromwich Road after the incident at around 9.30am on Monday.
No injuries were reported and work to recover the bus is underway.
Photos from the scene show a Diamond Buses bus through a garden fence near to a property.
A spokesman for Diamond Buses said a full investigation is now underway.
A spokesman for West Midlands Ambulance Service said: “We were called at 9.35am on Monday to reports of a bus going through a fence and colliding with a house at the junction of Greenside Way and West Bromwich Road in Walsall.
“A paramedic officer attended the scene to discover that no-one in the house or on the bus had been hurt and all ambulance resources were stood down very quickly.”
A West Midlands Police spokesman said they were at the scene for traffic management purposes only.
A spokesperson for Diamond Bus said: “Diamond Bus can confirm that an incident did occur earlier today in West Bromwich Road, Walsall whereby a property was damaged by one of our vehicles.
"A full internal investigation is underway and it would be inappropriate to give any further details at this stage.”
West Midlands Fire Service have been approached for comment.