The rules on the loans have changed so very much. Gifts on FHA used to be common but it had to be seasoned in a bank account for a few months. Seller concessions were blamed for a large part of the foreclosures, due to so many home owners getting in with no money down.
There are some wonderful opportunities still available. My best advise is to contact a reputable lender and see if there is a loan with that style of gift available. If you need a good name and number I can provide you with a few. I am sorry I did not give you a straight yes or no but it is really a lender question.
I hope you enjoy your grandfathers condo and thank you for the question.