It happened in the 2800 block of Jubilee Lane, which is off Fayetteville Street.
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At 4:30 a.m., the call was dispatched as a fire alarm but turned into a structure fire.
Upon arrival, units said there were flames visible from the front of the house. Durham Fire Department sent 41 firefighters and had the fire under control in under 15 minutes.
ABC11 is told the home is a total loss, but the family of three who lived there could get out.
There were no reported injuries. The family is being assisted by the American Red Cross.
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The homeowner said Habitat for Humanity built the home for them. They have lived there since 1999.
The cause of the fire is under investigation.