In my humble opinion, there are probably loans out there, but there shouldn't be.
If someone has a credit problem, rather than getting further into debt, they need to get a handle on their current debt, and work to improve their credit.
Unless there was a catastrophic problem - job loss, health issue, divorce, etc., that occurred, poor credit often means one is spending more than they should, have gotten in over their heads, and can't handle their finances in a reasonable manner. Offering more credit may only create a bigger problem for that person.
Owning a home is more involved than simply paying the mortgage and property taxes. Things can break, and if you aren't financially stable, you may be walking on very thin financial ice.