IPhone 5s on recovery mode loop after water damage

A couple days ago I fell asleep and my cat knocked over some water on my desk, and my phone was submerged in maybe a tablespoon of water.
When I woke up I noticed there were water smudges inside the screen, but everything was working correctly so I just left it alone.
The next day my home button started acting up and not working, and today the home button pretty much does not work at all, and voice control keeps coming on every 10 seconds or so.
I decided to try to do a hard reset before taking it into the Apple store (probably a dumb mistake) and now it is stuck on a recovery mode loop.
I do the restore and every time it's finished, the phone tells me to plug it into iTunes again and that it's in recovery mode.
Do you think the water has totally messed up my phone and it won't come back on? The only thing that was messed up on my phone before I did the hard reset was the home button. Is there anything else I can do to get it back on? At this point I don't really care if I don't get my backup loaded, would just like to have a somewhat working phone.
Thanks.

Hi, djab12.
Thank you for visiting Apple Support Communities.
Here are the steps on how to resolve update error 3004.
Errors 3000-3999 (3004, 3013, 3018, 3164, 3194, and so on): Error codes in the 3000 range generally mean that iTunes can't contact the update server (gs.apple.com) on ports 80 or 443.
Update to the latest version of iTunes.
Verify the computer's date and time are accurate.
Check that your security or firewall software isn't interfering with ports 80 or 443 or with the server gs.apple.com.
Follow these steps to troubleshoot security software. Often, uninstalling third-party security software will resolve these errors.
An entry in your hosts file may be redirecting requests to gs.apple.com (go to "Unable to contact the iOS software update server gs.apple.com" above).
Internet proxy settings can cause this issue. If you're using a proxy, try again without using a proxy.
Test restoring while connected to a known-good network.
Error 3004: If you're using a Mac, you may be able to resolve an error 3004 by quitting iTunes and using the following command in the command line: dscacheutil -flushcache.
iTunes: Specific update-and-restore error messages and advanced troubleshooting
http://support.apple.com/kb/TS3694
This could be related to the host file being modified. Go to the section labeled Blocked by configuration: (Mac OS X/Windows) > Windows or Mac > The hosts file may also be blocking the iTunes Store.
iTunes: Advanced iTunes Store troubleshooting
http://support.apple.com/kb/TS3297
Cheers,
Jason H.

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IPhone 5s on recovery mode loop after water damage

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