EXHIBIT 23.1

                    CONSENT OF INDEPENDENT ACCOUNTANTS


          We consent to the reference to our firm under the caption "Experts" in
the  Registration  Statement (Form S-3 No. 33-00000) and related prospectus of 
Litchfield Financial Corporation for the registration of 349,768 shaers of its
common stock and to the incorporation by reference therein of our report dated 
February 3, 1996,  with respect to the consolidated financial statements of 
Litchfield  Financial Corporation  incorporated by reference in its Annual 
Report (Form 10-K) for the year ended December 31, 1995, filed with the 
Securities and Exchange Commission.

                                        
                                             /s/Ernst & Young LLP

                                             ERNST & YOUNG LLP

Boston, Massachusetts
October 10, 1996