Double-check your home directory permissions again. Modifying Apache won't have any effect on you home directory when logging in locally.
The home directory needs to be owned by the user. It's expected to have read, write and execute access for the owner.
RedHat typically creates a unique group per user. The home directory should have that group as its group owner. Typically, you only give read and execute permissions to the group.
Since you want to allow Apache access, then the other user permissions need to allow read and execute for each directory from the top home directory through to the public_html directory (or whatever you set it up as).
So, again, as root, double check the directories themselves (ls -l /home) , verify the owner:group is correct, and make sure the permissions are correct (chmod 755 /home/<username>).