I recently “inherited” a 1994 940 turbo that the previous driver overheated. Long story short, head warped way beyond tolerance, cylinder walls ok, although with noticeable ridge (20-30 thou). I have however, located a low mile (125k) complete turbo engine from a 1995 740 for $300. Before I purchase the 740 turbo engine, I want to make sure interchange is possible without serious trauma. I believe that these engines/years/models are interchangeable without serious headache, but figured it worth inquiry here.
Much thanks in advance.

As trichard said, no 740 in 95. However perhaps it was a typo or other minor error.
The motor will fit, bolt up etc. Accessories like egr have to be accounted for, but they are both lh2.4. 95 had some minor changes re: fuel pump and relay, and it's possible some bits such as IAC may be different, but those are easily managed.

740 production ended in 1992
it sounds like your prospective engine has been mislabeled by the seller.
in 95 only 940's had a turbo engine of the kind compatible with your car.