There is no way to intercept the home button on Android, unless you make your app the home screen. This is for security reasons, so that malicious apps cannot take over your device by overriding all the buttons that can exit. The home button is the one sure shot way to be able to leave any app.
In short, no it's not possible, and even if it were, it is a serious disruption in what a user expects out of an app's behavior. You will have to go with making your app into a launcher if you want to achieve this.