Translation:My friends will be at our house until ten o'clock.
Remember that у doesn't mean "to have", it's just a preposition which can be used for that meaning. In general it means roughly "at", "by", etc. Дома means "at home" so: "У нас дома" = "By us at home". In general you will know the distinction because the noun will be in prepositional: "У меня на работе" = "By me at work" or less literally "At my work".