If you buy the house in your name, you would be able to qualify for the First Time Home Buyers Tax Credit. So, I think from a tax point of view, you should own the house in your own name and you would be able to claim the tax credit that is available to you!!
The Worker, Homeownership, and Business Assistance Act of 2009 has extended the tax credit of up to $8,000 for the qualified first-time home buyers purchasing a principal residence.
Furthermore, to answer your next question, if you were to sell the home then as a First Time Home Buyer, (assuming you live in the home) there generally would be no tax on gain from the sale of the home.
You can of course give your father the loan back to him that he provided you to purchase the home! I am also sure that you can share any of the profits that you can gained from the sale of the home.