What are my chances of getting into an REU program?
"I am unsure as to how to feel about fabricating the truth to make it seem as if I have had little research experience."

Experience is good.  Just clearly explain how your work at the REU will be different from what you can do at your home institution.

Do include your demographic information.

Carefully check the rules to see if you are still eligible after four years of undergraduate study.  Carefully explain why you are doing a fifth year of undergraduate study.

It is normal to feel stressed, but there is no need to worry.  Not much is at stake, and you have a good chance of success.  Seven applications is plenty.