A Hard Choice!

Sarah • 23 years old married with one three year old daughter and a newborn son
My father is going into two court hearings tomorrow and wants to borrow $1500.00 in case of any fines. But my husband and I have been trying to get a bigger place before our second child arrives. The move in cost is $1600.00.....
We fear my father will not pay it back and we will not get our new home. 
If I don't loan it to him and he ends up needing it he could end up in jail, but if I do and he doesn't need it what's to say he won't spend it anyways. My family goes without a better home while he goes on a shopping spree.
(keep in mind I live in a two BR one BA handicap appt. the ceiling is caving in and the bathroom walls behind the tile are riddled with black mold)
We told my father yes because we don't want him to go to jail and miss his first grandsons birth.
Do you think we made the right choice?