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As I understand it, there is an exception that you'd be interested in. If a child or grandchild has lived in the house and provided caregiving services such that the entry into a nursing home was delayed, then the recipient can give the house to that child or grandchild, either immediately or through a will.
An obstacle for many people is that all of Mother's money will go toward the cost of her care. She will not be able to pay taxes or insurance or otherwise maintain the house once she is in the NH. Will you be able to do that?
She can "spend down" the little money she has before going into a nursing home. Perhaps she could pre-pay the house insuranve for a few years. Or have a new roof put on if the house is about to need it.
I'm sure you are trying to conserve money, but I think it would be a good use of some of Mother's funds to consult with an attorney who specializes in elder law. You'd get the straight scoop on you remaining in the home and good advice about what to spend money on before applying for Medicaid.
Good luck to you!