The military training Alpha jet crashed in the Vouvray region, near the city of Tours, during a flying exercise.
Six residents of the home have been injured and one is in hospital in a serious condition.
Both the pilot and the student pilot parachuted to safety in an area they thought uninhabited as the home for disabled is in a remote field.
The home hosts 135 residents but it is unclear how many were indoors when the jet has crashed into the dining room at 5.30pm.
According to air force colonel Jean-Pascal Breton the crash was due to a technical problem.
Health Minister Marisol Touraine called for an investigation into the accident.