Well, you sound like a very insightful person and this does not sound like a decision you are making on impulse, without any thought. And it sounds like you and your husband are talking about this, which is a good thing.
I understand what you mean about timing but maybe this is happening right now for a reason. You are dealing with a very very difficult situation with your father and maybe this little dog has come into your life right now to help you through this in some way.
When I adopted my first dog, she was from a shelter and she was very filthy and smelly and also very matted. And when I say smelly, I mean really really smelly. After she was groomed, she became a different dog
And with Blue, once you start to feed him proper food (goodness knows what he has been eating) and he is groomed, I think those issues will resolve themselves. He is a very handsome boy. If it was me, I would go ahead and proceed. Of course this is just IMHO and I know you are seeking out opinions here so I am posting mine.
IMHO, go for it
Blue looks awesome and I bet he will be a great pet.