Depends on how much you want to spend on the engine job... And the
whatever else is broken job... And the next broken thing after that
...

Face it a 95 with a blown engine is worth just about what scrap is
selling for and not much more. It's old, doesn't run, and may need
some extensive work. OK, you may be lucky, and only a few things, but
once you put about $1000 into the engine, what do you have? A car that
has a book value of maybe (depending on condition) of about $2000 max.
Good deal? No, not even slightly. If they will give it to you for free
take it, if not walk away.

Well I paid $400 for a 1996 Jetta with automatic transmission last year.  It
also would not start.
I got it running very well, needed an ign coil, and then could not easily
sell it due to body blemishes.
I only got $1200 here in Chicago.
BTW the owner also wanted $800 for that dead '96 Jetta, and no one else
wanted it.  ;-)

So $800 is too much with it being DEAD and not having a perfect body.  You
can't tell what else is wrong, like the transmission might have a bad
reverse gear.

Pay $200-400 and hope that at least the transmission is good.  You will make
money on parting it out, if you have to.  ;-)

JMHO

My son's on his second 1995 Jetta.  He loves the car from a driving
standpoint.  From a repair/reliability standpoint, both have been a pain
in the neck (and elsewhere).  We're hoping the (manual) transmission
gets him to the spring so we don't have to change it in the cold.  This
one's had a new wheel cylinder, a master cylinder, a front wheel
bearing, a front transmission seal (and, of course, the clutch as a
result), and some things I can't remember right away in under a year.

Having said that, the first one threw a timing belt without bending any
valves, so the engine might not actually be damaged.  If the mileage is
low the one you're looking at might be worth the money, but I keep
asking my son whether he can spell "Honda" or "Toyota" because
they...just...keep...working!  (My other son's about to break 190K on a
1991 Accord, which in its lifetime has had fewer problems by far than
either of the two Jettas have had in two years.)

Personally, I'd walk away.