When I returned to work (Full time) following the birth of my first child, we were going to send him to Kindercare. The night that we took him there for an introduction (7 weeks old), our neighbor called and mentioned that her mother had lost her job and would be happy to take care of our son.
For the next 18 months, she cared for him in our house. It was great for the first year with a few issues, but it went down hill when we had to confront her on a few things.
When our daughter was born, we'd already decided to put both into a formal daycare for lots of reasons (socialization and structure - educational being primary).
Here were the great things about having someone come to your house:
1. One-on-One attention
2. More flexibility with when you had to leave/come home
3. Not having to bundle kids up in the winter, bring all their bottles/blankets, etc. to day care
4. Generally a little less expensive.
Here are the downsides:
1. You're stuck if they are sick or want to take a day off. Their vacations become your vacations.
2. Less exposure to other kids, socialization and formal instruction
3. Having someone in your house, eating your food, changing your thermostat, etc.
We've been EXTREMELY pleased with having both kids in a formal day care (state licensed) for the past 2 years now.
We looked at in-home, and we almost decided on one, but she didn't have a spot open for both an infant and a toddler. It's more difficult for kids to get the socialization/education that is age appropriate when 1 person is watching infants-10 year olds.
We have had 2 friends pull their kids (same ages as yours and mine) from in-home programs and put them into day care facilities in the past year. Though the caregivers were very loving and attentive, there were problems with some of the other children, the structure, the activities planned to engage and instruct kids on basic things like shapes, colors, numbers, etc.
I personally never cried when taking my kids to day care and going to work. I knew they were in good hands, and I was close enough by to see them/address anything (which we haven't had to do).
Good luck.