1



                                                                    EXHIBIT 23.1


                        Consent of Independent Auditors


We consent to the reference to our firm under the caption "Experts" in the
Registration Statement (Form S-3 no. 333-   ) of Litchfield Financial
Corporation for the registration of $100,000,000 principal amount of Litchfield
Financial Corporation's notes and to the incorporation by reference therein of
our report dated January 31, 1998, 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, 1997, filed with the
Securities and Exchange Commission.



                                        Ernst & Young LLP


Boston, Massachusetts
July 13, 1998