The Mobile Expandable Prefab House on Temu: A Smart Buy?

Social media is buzzing with a potential solution to the housing crisis: a portable building that folds out into a spacious and customizable tiny home. You've probably already seen the mobile expandable prefab house on Temu, but is it everything people are claiming?

We'll review the truth about Temu prefab homes and why they might not actually be a low-cost housing option for most buyers.

Key Takeaways

• The mobile expandable prefab home is roughly the size of a shipping container but designed to fold out into a 380-square-foot living space.

• In addition to buying the home on Temu, you'll need to have it unloaded, build out the interior, and hook up utilities.

• Temu prefab homes are unlikely to meet residential building code requirements in most areas.

• Expandable houses don't qualify for traditional mortgages, but other financing options may be available.

Can You Buy a House on Temu?

You can buy just about anything from Temu – including a house. In fact, there are a variety of portable buildings to choose from.

But recently, one listing has been making the rounds across social media. Sold by Chery Industrial, a Chinese-based storage and portable shelter manufacturer, the 19x20 FT mobile expandable prefab house on Temu has attracted hundreds of thousands of curious viewers – but is it the real thing?

What Is the Mobile Expandable Prefab House From Temu?

Billed as an affordable housing solution, the Temu mobile expandable prefab home is a 380-square-foot structure designed to offer a compact, highly customizable living space at a far lower cost than traditional housing options.

The home's listing price, including shipping, is just under $16,000 as of this writing.

Installation is claimed to be simple: your new house gets delivered, and you fold out the walls and lock them into place. After a quick weatherproofing of the joints, you have a waterproof and thermally insulated home at a cost that’s even lower than the average used car (which is over $25k, in case you were wondering).

Temu Prefab Homes: A Realistic Affordable Housing Solution?

With a price tag under $16,000, it’s easy to see why so many people would be interested in this expandable living space. But are Temu prefab homes a realistic affordable housing solution?

They may be in some situations, but for most people, they aren't.

First, the price you see listed is just for the basic exterior of the home. You will still need to build out the interior, installing walls, flooring, electrical wiring, and plumbing for the kitchen.

While less costly than building a new home, hiring a professional to complete the work will not be cheap. Doing it yourself will be time-consuming, and if you don't have relevant experience, it's likely that mistakes will drive up costs further.

But that's just part of the problem. It's not always easy to find a place to put a mobile expandable prefab home; even when you do, you'll likely incur additional installation costs.

Where Can You Put an Expandable Prefab House?

Suppose you do buy the Temu mobile home – what's next? Where can you put an expandable prefab house, and is there anything else you'll have to do before moving in?

Site Preparations

Your home comes delivered on a flatbed truck, and the seller recommends using a crane for unloading and site placement. Daily crane rentals will cost a minimum of a few hundred dollars and can run up to $1,000 or more in some locales. If you need to pay someone else to bring in and operate a crane, expect costs to start at $1,000 and climb.

The expandable prefab house sits on twelve metal screw-on feet. While a concrete slab foundation would be preferable, installing it on level, compacted dirt might be possible. However, doing so may not be ideal for long-term use.

Some competing products recommend pouring concrete over the home’s feet when installing without a slab foundation, but this would limit your ability to relocate the prefab house in the future.

You will also need to consider how to supply the home with:

• Electric Service

• Potable Water

• Sewage & Wastewater Disposal

Installing the prefab house on a site with existing utilities may be viable at a modest cost. Still, the expense of hooking up service at a new location could outweigh the price of the home itself.

Local Building Code

Local building codes and ordinances are the biggest obstacle to using the Temu mobile expandable prefab house as an affordable housing solution.

Most areas have strict guidelines on portable prefab homes and other tiny housing options. Homes are commonly required to have a minimum living area, which will generally be larger than this 380-square-foot building.

It's also uncertain if the structure is HUD-certified – built to HUD manufactured home standards. The listing does not claim that it is, which would generally be touted as a major selling point.

If it isn't built to the standards set by the Department of Housing and Urban Development, it's even less likely that local authorities will let someone use the structure as a full-time shelter.

Is the Temu Mobile Expandable Prefab House Safe?

The Temu mobile expandable prefab home is designed to be waterproof and insulated from the elements. Its construction includes a steel frame and fire-retardant materials. Properly installed, the building will likely be relatively safe under standard conditions.

However, under adverse conditions, a home purchased from Temu will not offer the same level of protection as a traditional site-built house or even a HUD-certified manufactured home.

Here are the manufacturer-disclosed safety ratings from their listing:

What Buyers Are Saying

As of the time of writing, Chery Industrial's Temu page shows that the company has sold 68 items through the platform, although it's uncertain how many people have purchased its mobile expandable prefab house. The company has a total of 66 items listed.

While there is little actual feedback on the viral prefab building, the company maintains a 4-star rating and 8.5k+ followers.

Chery Industrial's most popular expandable home is currently in more than 27k carts, while its other housing options have thousands of cart adds each.

How to Finance a Mobile Prefab Home from Temu

Because of its construction and portable nature, the mobile prefab house from Temu will not qualify for traditional home financing. However, Temu offers payment plans through three unique providers: Affirm, Afterpay, and Klarna.

Affirm

Affirm allows four interest-free payments or "other flexible options" with interest rates as high as 36%. The Affirm website states that they offer terms of 3, 6, 12, 18, 24, or 36 months.

Afterpay

Financing is available through Afterpay in four interest-free payments. According to the Afterpay site, purchases of more than $400 can be paid over six or 12 months.

Klarna

Temu advertises four interest-free installment payments when financing a prefab home through Klarna. According to Klarna customer service documents, loans can be financed for up to 24 months.

Other Ways to Finance a Temu Home

In addition to the financing options available through Temu, you may have some other options that are cheaper or more practical.

Personal Loan

Personal loans are unsecured financing commonly available for up to seven years. You can obtain a personal loan from a private lender or financial institution, and lenders set interest rates and loan limits based on your finances and overall creditworthiness.

Credit Cards

Credit cards generally have high interest rates and aren't necessarily the best option for financing a mobile prefab home. However, they may be a practical solution in some situations when you don't plan on carrying a balance for too long.

One option to consider is credit cards with a zero-interest introductory period. This promo rate often lasts for the first 12 months, allowing you to pay down the balance over time without accruing interest.

As you near the end of the promotional 0% rate, you may even be able to apply for and transfer the remaining amount to another credit card offering the same introductory deal.

Business Loan

Are you thinking about purchasing a mobile expandable prefab home for your business? You may be able to qualify for a business loan to buy this Temu listing for use as a modular office building. Interest rates are typically lower for business loans, especially for companies with a proven track record or history of working with the lender.

Do Temu Prefab Homes Appreciate in Value?

Traditional homes typically increase in value over time. Unfortunately, the same can't be said about Temu prefab homes. While these can be safe and secure under typical conditions, they simply aren't designed for permanent, long-term residence.

Purchasing the expandable house from Temu may cost significantly less than even a cheap manufactured home, but it’s likely to lose most of its value as soon as you set it up on your site.

If you’re planning to test the waters and decide if a tiny prefab home is right for you, it’s unlikely that you’ll be able to recoup most – or even a significant portion – of your investment should you choose to sell.

Final Thoughts on the Viral Temu House for Sale

The mobile expandable prefab house from Temu may be an excellent backyard guest room, office space, or storage area. Still, it probably won't be a widespread solution to the housing crisis.

Not only will you have to spend money to build out the interior, but finding somewhere that the building code will let you legally live in the home is bound to be challenging.

If you're looking for affordable housing, set yourself up for long-term success by considering standard homes. Use one of the numerous mortgages available to first-time and lower-income homebuyers, and add down payment assistance. Many of these loans offer favorable terms and even government-subsidized interest rates.

To determine if you qualify for a traditional home loan, check out current mortgage rates and apply with an experienced lender.