Investigators say the attack happened just before 1 a.m. Monday morning at Tegner and Johnson.
They say the men shot and killed 70-year-old Roberto Solorio.
Another man was also shot but he is expected to survive.
The Sheriff's Office says they are searching for a motive behind the attack.
"Some of these have a history of narcotic stashing houses, or seems like that. There's no indication of narcotics or anything like that at this residence," Deputy Tom MacKenzie said.
Action News talked to a family member who says a woman and two teenagers were in the house during the attack.
If you have any information about the case, call the Merced County Sheriff's Office.