What should I do? How should I feel?

Don't you give him any money! Think about it - if he needs money that badly and he can't get approved for a loan, he's NOT going to pay you back! If he can't get it himself, he's totally using you and taking advantage! Tell your husband about it today and have your husband talk to your dad to "lay down the law" and don't have anything to do with your parents! I would get your number changed so you have not dealings with them at all. I know you want to have a relationship with your parents but do not fall for this! You are being used! And by the way, you can get a home with $20k. Use your gut instincts - they are usually right every time!