You will get steam from the exhaust. One gallon of petrol burns to produce 1.5 gallons of water which leaves the exhaust as water vapour. In cold weather this water vapour turns into steam. The steam should be less noticeable when the engine and exhaust system have warmed through after a long ride out and be not noticeable at all in summer.
Hi, when the car is at max Temp check under the car to see if it's discharging coolant, If so signs of H/Gasket, before anything works starts get the car coolant pressure tested this will tell you for certain if its the H/Gasket.
Sounds like a leaky head gasket - if you've ever replaced one you'll realise how they leak - as yours is a V engine you have two hopefully only one is a problem - get a compression test done to identify the problem
These old Ford engines are easy to work on compared to modern engines so costs should be reasonable