My wife did this when she first started teaching. About a 90 miles round trip drive from the city to a boomtown out in the middle of nowhere. It was a crazy time for car clown commuting since she worked there, and I worked downtown in the city, so we moved to a distant suburb, and each commuted an hour plus one way to work when we decided to move in together.
Eventually she found a job closer to home, and I found a job closer to home. Everyone was happier.
The question for you is whether you would enjoy living in some tiny town in the middle of nowhere, or if you should just look for work in the city? Cities usually have plenty of jobs. Towns of 300 people do not. How much do you love your job? If you like small town living and love your job, then just pull the trigger, buy that $80K home(even if it means PMI), and then save, save, save to get it below the 20% threshold.
If you are lukewarm or worse about the job or the community where you work, then don't bother. Just commute while you figure out your future.