Chosen Solution
I know the finger print scanner will never work but I am unsure if the button will not work. If I get a replacement home button and install it would I be able to use it as a normal home button without Touch ID?
No– a replacement home button for iPhone 7 will not be recognized by the device and will not work either as a home button or as a fingerprint sensor. You might as well just put a rhinestone there.
Replacement Home Buttons for the iPhone 7 are for cosmetic purposes only. If you still have the original button, the “click” or return function can be repaired but not the TouchID.