You might want to check out what's involved with that. It's more than just the engine. You will also have to gut the car and install new wiring harnesses and a computer as well as most of the rest of the drivetrain. That isn't a typo; the V8s come with a different transmission, which, under California law, you will have to bring too (not to mention I don't think the V6 gearbox can handle the V8's power.)
There are also other laws regarding engine swaps in California that you will need to abide by. This includes being limited to CARB and EPA approved configs, so the 5.0 is as big as you can go, that being the largest currently certified N/A engine Ford offers in the passenger car class. You could also go with the blower 5.4.
IIRC, someone over on the Corral already ran the numbers on that. Even assuming you get a wrecked donor 5.0 at half going insurance auction rates, it *still* costs more than selling the 3.7 and getting a used 5.0, even before you turn a wrench.