How do I delete or turn this function off? The AC and Heating works perfectly. Beutler installed the whole system and said KB Home wanted it to help with mildew, however, this causes cold air to blow because it blows between cycles.

It would probably be better to just adjust your vent position if mold and mildew is a real issue. What part part of the country are you in?

Two ways to adjust the fan, from the limit switch inside the furnace, and the thermostat.

Watch these for background,

https://www.youtube.com/watch?v=jg0nK4QLpZo, and https://www.youtube.com/watch?v=QpHfFdk04u0

But read this first,

Air Conditioners: Indoor air quality improvement: continuous blower fan operation - how and why to run the heating or air conditioning fan continuously to improve indoor air filtration (http://www.inspectapedia.com/aircond/Blower_Fan_Continuous_On.php)

And

http://www.vent-axia.com/files/catdownloads/part%20fand%20l%20brochure%20web.pdf

Many areas now require builders to have intermittent running fans to be installed and this appears to be your situation.