[rubbingalcohol]

If you borrow money knowing you can't or won't pay it back then yes, it's fraud. But it's more complicated in this case, because the dude could argue he expected major gains and believed there was no way he could lose.

[mc3]

Yes, but "the dude can argue" can apply to the house example. "I planned to rent out the rooms". "I planned to get a better job". "The house is worth $1M to the right buyer", etc.

If someone lends you money on the basis of honest information you present to them I don't see how it is fraud. It might be unwise to take such loans, but that's a different thing.