In chapter 4, Paul uses the Old Testament example of Abraham to illustrate the way of salvation by grace through faith. In verses 1-5 he argues that Abraham stood approved before God, righteous before God, by faith apart from works of the law. Then, in verses 13-15, he goes on to argue that God's promise to Abraham of a kingdom (eternal life, etc.) is grounded on a "reckoned" (credited) righteousness through faith, not an earned righteousness through obedience to the law. All the law does is expose our state of loss. Finally, in verses 16-17a, Paul makes the point that God's way of salvation by promise rather than law, is for the spiritual descendents of Abraham, those who share the faith of Abraham.
 v1-3. Paul, having outlined the way of right-standing before God by faith, now seeks to illustrate this truth in the life of the patriarch Abraham. What did Abraham discover about standing right with God? If (as Jewish believers claimed) he maintained his standing before God through his own effort, through his own perfection with regard obedience to the law, then he would have ground for boasting. Yet, like all humans, he had no such ground, for he was sinful and without personal righteousness. For this reason, he could certainly not boast before God. Scripture proves this to be the case. The scripture says of Abraham that he believed God, and it was this act of faith which was credited (reckoned) to him as righteousness. By the way, "one should never forget that it is the object of faith, and not the faith itself, that produces the result", Gordon Clark.
v4-5. Abraham's righteousness, which was accounted to him, was the product of faith, not obedience; it was a gift of God's covenant mercy, not a due to be paid. Right-standing by works is earned; it is not something given, rather it is earned by obedience to the law. On the other hand, right-standing by faith is received as a gift; it rests on the principle that God reckons righteousness to the sinner who believes in Christ. Under this method, justification (judged right with God) is certainly not something earned, rather it is something given.
v13-15. Paul now explains the central plank of his gospel. The promised blessing of a worldwide family of God, a kingdom, made to Abraham, is not appropriated on the basis of a righteousness earned by obedience to the law, but rather on the basis of a righteousness (right-standing before God) given ("reckoned") as a gift through faith. God's way of salvation is by grace, by promise, not by law. The simple truth is that law and grace are mutually exclusive; they cannot function together. All the law does is expose our sinfulness and thus hold us to the wrath of God. Without the law we are unaware of our sinfulness and our condition of loss. The law serves to show us what we are - rebels against God and under his condemnation.
v16-17a. From his argument in v13-15 Paul draws out an obvious conclusion: the promise of an eternal right-standing in the sight of God depends on faith, not on obedience to the law, it rests wholly on God's covenant mercy ("grace") appropriated through faith. As such, right-standing before God applies to all Abraham's descendents: Gentile believers without the law and Jewish believers with the law. Paul supports this point by quoting Genesis 17:5 - in the sight of God, Abraham is the father of us all.
 Charles Wesley sums up the teaching of this passage from Paul's letter to the Romans when he says: "Faith, mighty faith, the promise sees, And looks to that alone". The Reformers made a similar point when they proclaimed, "by grace alone, through faith alone." Simple!
In our passage for study, Paul makes three points: First, Abraham stood right before God, righteous before God, on the basis of his faith and not works of the law, v1-5. Second, God's promise, to Abraham and his descendents, of a kingdom, of "eternal life" and all that this entails, rests on this right-standing before God, a righteousness which is given ("reckoned") as a gift through faith, rather than earned by obedience, v13-15. Third, this righteousness of faith rules out any idea that some denominational extra can improve our standing before God, v16-17a.
If we follow the example of Abraham and put our trust in God, we will find that our faith is accounted to us as righteousness. God "reckons" us, on the basis of the righteousness of Christ, eternally right and worthy in his sight. As worthy sons, we inherit the kingdom promised long ago to Abraham - we all inherit eternity, as a gift of grace appropriated through faith.
Faith alone is the instrument through which we appropriate the grace of God. No other instrument assists it. Holy living, or denominational faithfulness (baptism, confirmation, etc.), .... all worthy in themselves and expected of the Christian walk, play no part in appropriating God's grace. Our standing in the kingdom of God is through faith apart from good works. We see the promise of eternity and by resting on it we are given it.
 How does "faith alone" apply in the Christian life?