The Livingston County Daily Press & Argus of Howell reports that the man showed up in their Putnam Township bedroom around 3:30 a.m. Sunday.
Police say the couple left and called 911, and that officers found the man deeply asleep with his shorts partly down.
Police say the intruder said, "This isn't my house," upon waking. He explained he went out drinking nearby after putting his 2- and 4-year-old children to sleep at his own home a few doors down.
The children were found sound asleep and placed with neighbors. Their father was booked on suspicion of illegal entry and released on bond.