Flames broke out in the 400 block of West Broad Street around 10:30 a.m.
Action News viewer Tommy Frkovich captured video of the flames shooting into the air.
The fire reached several alarms before firefighters gained control around 12:00 p.m.
"I saw smoke and I wasn't sure if it was fog," said Mary Antanaitis.
The home where the fire began also houses a nail salon and apartments.
Two people who were home at the time, got out safely.
"That house was engulfed, it went up so fast," said Antanaitis.
Antanaitis, a next door neighbor, says she didn't realize until she escaped with her husband that their home caught fire as well.
She has lived in the home for 60 years and her husband spent all of his life there.
The Antanaitis' live on the right side and crews had to cut open their roof. Meanwhile the home on the left side was also heavily damaged.
"We brought a back hoe in to get inside and wet everything down," said Capt. Glen Roemmich, Paulsboro Fire Department.
According to the Red Cross, two families were affected in the blaze.
One person was also treated and released at an area hospital.
In regards to the cause, the Paulsboro fire chief will only say that it remains under investigation by numerous agencies.
