Yes, you can use FHA and Conventional program for a primary home if you are buying a "Distressed" property - (Will not pass an inspection) "Subject to">  FHA offers a 203K loan and Fanie Mae offers a Home Style program which has the sole purpose of working with distressed properties. 

If often more that they are abandanoning the property to the government because there is some type of constraint, i.e. there is a street light oddly placed in the middle front part of the parcel, there is a creek or wash (which means environmental permits would be needed), there is lack of true legal access, zoning problems, etc. 

Quote from @Christian Styles: testing testing testing testing testing.

We are retired and have no plans to work (other than work from home).Budget is around $700K with about 3000 sqft, preferably ranch style.

So it would be fine to add her to the title of your new property.I agree with @Christian Styles, no need to mess with a gift at all. 

You really want to make sure that the land you are buying doesn't have any major constraints that can't be overcome, or even if they can be remediated, at what cost, i.e. environmental, soils/geotechnical, adequate access, zoning, etc. 

There are exceptions, and some investors have succeeded with Airbnb style rentals in Santa Fe that can be very lucrative when rented consistently.

Quote from @Christian Styles: Hey Sam, I've used both Propwire and Propstream, they seem quite similar but propwire has a free base version and propstream does not.

My cleaning style takes time.

Quote from @Christian Styles: How weird.I would have a straightforward conversation with him.