First, ignore Google navigation and follow Patrick's instructions to the home and the signs for the hostel. Google wants to take you on a single track road, which is fine if you're on a mountain bike, and my car did make it at night by mistake, but I would just recommend "don't".
The home is just lovely - accommodations are grand. The location is just a short hop to Kilcar and not far from Killybegs as well. The Lake is swimmable, though I didn't hop in this trip as I had a bit of a head cold.
The family are gems though. Truly loved getting to know Carol more, and will be rooting for Donegal football :).