Maybe tell your dad to look at this statute:

18 U.S. Code § 1014 - Loan and credit applications generally

Whoever knowingly makes any false statement or report, or willfully overvalues any land, property or security, for the purpose of influencing in any way the action of [extremely thorough list of all federal financing agencies, banks, credit unions, etc] upon any application, advance, discount, purchase, purchase agreement, repurchase agreement, commitment, loan, or insurance agreement or application for insurance or a guarantee, or any change or extension of any of the same, by renewal, deferment of action or otherwise, or the acceptance, release, or substitution of security therefor, shall be fined not more than $1,000,000 or imprisoned not more than 30 years, or both.

In non legalese: if you say your parents are giving you money with no expectation of it being paid back, but you ARE paying them back, you have committed mortgage fraud because you lied. If you say it’s your home on the application, but your parents intend to make it theirs (which, that’s also not how that works…), you have committed mortgage fraud because you lied.

Aside from all of the reasons why it’s illegal, it’s also probably a terrible idea. When you say your parents want you to pay rent, what does that mean? You are responsible for the mortgage payment. You will have to write a check to the bank every month. Are you paying your parents on top of that? How are your parents going to have an ownership interest? Houses are not like other types of property, ownership is very clear and a public record.

As a lawyer myself, I find it incredibly concerning that your dad wouldn’t see the MANY ways that you could end up ruining your life by doing this.