Hi Zarkex
The first thing I would recommend is to take it to apple for a screen replacement. This will fix all issues assuming you can install the original screen back on the iPhone.
If this is not an option, there are home button “fixes” available for the iPhone 7. [https://www.mobilesentrix.com/replacement-parts/apple/iphone-parts/iphone-7|Here is a link] to a store I trust which sells these “home button solution” parts. Hopefully they have it in your color.