It implies that the first owner had bought the car through finance (taking loan) and is used as private car, not the rental car. Don't get confused the loan reported with lease one. The second owner bought the car and used it. So you will have no problem regarding title, regarding condition u may have checked. So it does not matter who is the first owner.

Loan or lien reported
CARFAX Xpert If you are buying this vehicle from a private seller, check to be sure any associated lien on the vehicle has been paid off.
 This is written only if you were buying from the first owner. If you were buying from a person who had taken car through loan, then only you need to see whether the loan has been paid off. Since someone already bought it and now its your turn, you don't need to worry. So regarding registration or paperwork you will have no problem in future.