Ways to structure deal with private lender

[Nate McCarthy]

My wife and I are looking at buying our first home and a close family friend with money has offered to pay for the home until we can qualify for a conventional loan (we're both changing jobs and I've been in school and not working full time). Ignoring for the moment the potential dilemmas with working with a family friend as a lender, I wanted to get some suggestions as to how to structure this "loan." 

The way this person has phrased it is that they would buy the house, and then sell it to us when we can get a loan. My concern with this approach is 1) that they might be subject to capital gains (or something) for selling the house within 2 years (a timeframe in which I hope we'll be able to get a favorable loan), and 2) that is time we are missing out on ownership of the house for tax purposes--that is, if we were hoping to sell this place in 2-3 years (for example) my understanding is that we'd be able to do so tax-free if that were our primary residence for 2 years. So, if the family friend were to own it for a year or so, those 2 minimum years of that home being our primary residence would only start counting down once we were able to buy the property ourselves.

Hopefully that explanation wasn't too complicated. Basically I'm not sure if the family friend buying the house and then selling it to us is the most efficient in terms of taxes and other transaction costs. To be sure we will have a lawyer involved in any deal we make with this person, but I wanted to canvas the BiggerPockets crowd for suggestions as to how to conduct a deal like this. 

Thank you for any and all suggestions!