I didn't get the option to buy it until after I got back from retrieving the shield - then I was good to go. You don't need to do the "help the citizens" bit to buy the house, that's for something else.

ETA: I should point out that I wasn't able to do any more quests for the Jarl once I'd completed the Forsworn Conspiracy - the option to ask him about work just disappeared and I wasn't able to buy the house, I had to go back to an earlier save and do the Jarl's quests first - I guess that's a bug.