We present a comprehensive study of second-order nonlinear difference frequency generation in triply resonant cavities using a theoretical framework based on coupled-mode theory. We show that optimal “quantum-limited” conversion efficiency can be achieved at any pump power when the powers at the pump and idler frequencies satisfy a critical relationship. We demonstrate the existence of a broad parameter range in which all triply-resonant DFG processes exhibit monostable conversion. We also demonstrate the existence of a geometry-dependent bistable region.