A proposal to give homebuyers an extension to complete existing deals was unveiled in the Senate. Homebuyers who have existing signed contracts may get an extra three months to finish qualifying for federal tax incentives that boosted home sales this spring.

Currently, homebuyers must have signed contracts by April 30 and must close the deal by June 30.

With this, first time homebuyers could be eligible for an $8,000 tax credit while previous home owners could be eligible for $6,500 credit.

Senate Majority Leader Harry Reid, D-Nev introduced the proposal as an amendment to a bill that would extend jobless benefits through end of November said he wants to give buyers until September 30 to complete their purchases and qualify for tax credits of up to $8,000.

The proposal would only allow people who already have signed contracts to finish at the later date.

"By extending the transaction deadline, we can ensure that everyone taking advantage of this credit can complete the purchase of their new home, Reid said.

Mortgage lenders have been mired with borrowers wanting to get approved by end of the month according to the National Association of Realtors who has been urging Congress for an extension while mortgage lenders.