We investigate, theoretically, the generation of bright and vacuum-squeezed light as well as entanglement in intracavity, type II, phase-matched second-harmonic generation. The cavity in which the crystal is embedded is resonant at the fundamental frequency but not at the second-harmonic frequency. A simple model for the process using semiclassical theory is derived, and quadrature-squeezing spectra of the involved fundamental fields are deduced. The analysis shows that vacuum squeezing reminiscent of subthreshold optical parametric oscillator squeezing is present and, in the ideal case, perfect. Under slight modifications of the operational conditions, the system is shown to produce efficient bright, squeezed light. Furthermore, we investigate the degree of polarization squeezing and find that three Stokes parameters can be squeezed simultaneously. Finally, we gauge the process for possible entanglement.