The unexploded German bomb was dug up in Friars Road, Christchurch, on Friday morning by builders laying the foundations for an extension.
The house has been sealed off and about 150 properties within a 200-yard (182m) exclusion zone have been evacuated.
Expert bomb disposal officers are at the scene and are checking the explosive with x-ray equipment.
The Royal Logistics Corps, who are at the scene, do not have the correct equipment to disarm the device so a team of Royal Engineers is now en route to the scene from near Stansted.
It is thought some residents have gone to stay with friends or relatives.
However, Christchurch Borough Council will arrange emergency accommodation for those who need it.
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