The 58 year old was arrested on Sunday as part of the probe into the attack on the house in the Ard na Smoll area of Dungiven.
He has now been charged with arson with intent to endanger life.
Detective Sergeant Wallace said: “We continue to appeal for information about this fire, which occurred at a house in Ard na Smoll.
“The fire was reported to us at approximately 11:40 pm on Friday.
“No injuries were reported, however, the blaze caused significant damage to the property.
“I want to appeal to anyone who saw any suspicious activity in Ard na Smoll, around 11:30 pm on Friday night, including persons or vehicles, on Friday night to get in touch with detectives in Coleraine on 101, and quote reference number 2190 of 03/01/20.”
Alternatively, information can also be provided to the independent charity Crimestoppers on 0800 555 111 which is 100% anonymous and gives people the power to speak up and stop crime.”