If you're curious why I think your stated views are a better match for movement conservatism, maybe I can explain.
I can't comment on specific Washington legislation, because I don't live there and I don't understand the details of it. What I can say is that the gentrification of actual cities is not at all the goal of densification movements. The whole point is to turn "every little podunk half-city" into an economically sensible mix of medium density residential, commercial, and light industry. The inner city is already dense, so why would you work to make it more dense? The suburbs are the problem!
I respect the fact that you have thought about this problem, and you have specific complaints about a government policy that isn't working the way you think it should. The thing is, progressives are generally in favor of densification, even if it takes some experimentation to get the policies right. And unfortunately, there's a very strong cultural movement among conservatives, a get-your-hands-off-my-recreational-F350, rolling coal, anti-bike, anti-walkability, anti-densification deal, so if you're opposed to densification for any reason, you're pretty much stuck voting for politicians who are pandering to those folks.
It's absolutely wonderful that your friend was able to take advantage of this program. Sincere congratulations on her good fortune.
That said, what you described sounds horrific to me. This program sounds like workfare crossed with a bank hand-out.
Someone who can meet a minimum income requirement, and has enough free time to repair a home, shouldn't need housing assistance. And that assistance definitely shouldn't come in the form of an artificially reduced down payment and debt service rate, which is jet fuel to a housing market's steel beams. And the effect on local contractor markets? Yikes!
Progressives would say, the fact that your hard-working, single-mom friend can't afford a house by her own accord, is a huge problem by itself that should be tackled directly. Making it easier for her to get a bank loan really isn't the right answer. In aggregate I think this is hurting a lot more people than it's helping.
Yup, that's why progressives want every building and neighborhood to include a mix of high and low income housing, rather than boarding it all up in one big ghetto. Research has shown that outcomes improve for everybody when disadvantaged and marginalized people are removed from destructive environments and integrated into higher-income communities.
But, well, uh, some people don't want certain other people living near them.
The thing that makes me uncomfortable is a government deciding when it is and is not appropriate to undergo a medical procedure. There are American women who die today because Republican state governments have made it too difficult to get a timely abortion of a non-viable fetus. There are American women who are forced to carry their rapists' babies to term today, even though we know that propensity to commit rape is influenced by genetics. That is what makes me uncomfortable.
I don't know exactly where you fall on the spectrum, but I'm guessing if you had to choose between legal abortions forever, and banning abortions forever, you'd choose the latter. So, yes, I would say you are more likely to vote Republican on this issue.